A Seller Paid 2-1 Buydown is a form of a seller concession that can greatly help borrrowers afford a larger loan amount and perhaps a more desirable home. Discussing this with your mortgage professional so that he or she can explain how to integrate this into the purchase offer with your real estate agent.

A seller paid 2-1 Buydown is great way to ease into a mortgage payment. You may have some "new home" expenses you incur in your first couple of years in owning a home. Once you start to see the postive results at tax time, you will be in a much better position to handle your payment in years 3-30.

In todays tighter real estate market more sellers are agreeing to seller paid 2-1 buydowns in order to sell their homes faster. Make sure that your real estate agent knows that you want a seller paid 2-1 buy down before the offer to purchase is written.

Typically, a seller funded 2-1 buydown would cost about 2.5% of the purchase price. Ask your mortgage professional to run scenarios for you with both a seller funded 2-1 buydown as well as a buydown of the rate with 2.5 pts. Depending on your situation one or the other may work best for you.

 

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