Mortgage Buydown
Help your listings stand out and sell faster. A seller-funded buydown uses seller credits to temporarily lower a buyer's interest rate - making the home more affordable and appealing in today's high-rate market.
Contact A BankerSeller Benefits to Mortgage Buydown
- Gives buyers greater purchasing power & affordability
- Shorten time on market and close deals faster
- Make your listing stand out from the competition
How does a mortgage buydown work?
Strategic & Professional
A seller-funded buydown gives buyers lower payments, attracts stronger offers, and helps sellers close faster—without cutting the price.
Client-Focused
Empower buyers with affordability while helping your sellers protect equity and move their home quickly.
Market-Focused
By turning high interest rates into opportunity, a seller-funded buydown helps make homes more appealing and sales more successful.
Market-Ready
A seller-funded buydown positions you as the agent who helps both sides win— without lowering the price.
Common Types of Mortgage Buydowns*
2-1 Buydown
The buyer’s rate is reduced by 2% in the first year and 1% in the second year. By year three, the rate returns to the full, fixed note rate.
| Mortgage year | Interest Rate | Monthly Payment | Monthly Savings |
|---|---|---|---|
| 1 | 4.30% | $989.74 | $248.20 |
| 2 | 5.30% | $1,110.61 | $127.34 |
| 3 | 6.30% | $1,237.95 | $0.00 |
3-2-1 Buydown
With a 3-2-1 buydown, the buyer begins their mortgage with a reduced interest rate that gradually increases over the first three years.
| Mortgage year | Interest Rate | Monthly Payment | Monthly Savings |
|---|---|---|---|
| 1 | 3.30% | $895.91 | $362.04 |
| 2 | 4.30% | $989.74 | $248.20 |
| 3 | 5.30% | $1,110.61 | $127.34 |
| 4 | 6.30% | $1,237.95 | $0.00 |
*Rates and amounts used are only examples and not current rates
Offer a Powerful Incentive for Your Clients
A seller-funded buydown allows your seller to offer buyers a temporary reduction in their mortgage rate. At closing, the seller provides a credit that’s placed into an escrow account managed by the lender. Those funds are then used to lower the buyer’s monthly payments during the buydown period—making the home more appealing and attainable.
Contact A Banker
All loans subject to credit approval.