The Gist
The 2-1 Buydown Advantage
How Seller-Funded Payment Relief Can Beat a Simple Price Cut
Compare temporary buydowns against price reductions and permanent points, understand qualification reality, and see when a 2-1 structure creates the most strategic payment relief.
5 Blinks~9 minutesFree
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Blink 01 · 2 min
A 2-1 Buydown Changes Payment Timing, Not Qualification Reality
The relief is real, but the full note rate still matters
“A 2-1 buydown reduces the payment in year one and year two, but the borrower still qualifies using the note rate in most cases. That makes it a cash-flow relief tool and a negotiation tool, not a magic affordability loophole.”
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Blink 02 · 2 min
Seller Concessions Often Work Better Here Than Price Cuts
Monthly-payment psychology beats tiny principal changes
“In many markets, a seller can create more buyer value by funding a temporary buydown than by making the same-sized price reduction. Small price cuts barely move the monthly payment, but a funded buydown changes the payment immediately and visibly.”
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Blink 03 · 2 min
Rate-Drop Optionality Is the Hidden Edge
The temporary relief is useful even if you refinance out early
“A 2-1 buydown is especially interesting in a market where future refinance is plausible. The borrower gets immediate payment relief now, and if rates improve during the first two years, the loan can be replaced before the payment ever steps fully up.”
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E
EARL · Mortgage Butler
Ready to turn these insights into your actual numbers
Educational content only. Not financial advice. Rates and figures are illustrative.
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