when to use a 2 1 buydown
home sellers may want to consider offering and paying for a 2 1 buydown if they re having difficulty selling and need to provide an incentive to find a buyer borrowers may benefit from a buydown if it allows them to buy the home they want at a price they can afford however they will also want to consider what would happen if their income doesn t rise fast enough to keep up with their future monthly payments buyers should also make sure that they are getting a fair deal on the home in the first place that s because some sellers might increase the home s price to make up for the cost of the 2 1 buydown note that buydowns may not be available under some state and federal mortgage programs or from all lenders a 2 1 buydown is available on fixed rate federal housing administration fha loans but only for new mortgages and not for refinancing terms can also vary from lender to lender 1