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Writer's pictureKelly McCallister

How can the 2-1 Interest Rate Buydown help my buyers?

Updated: Nov 7, 2023

New Market. New Strategies.

Maximize Savings with Interest Rate Buydown

BUYERS // the market appears challenging…But one thing you have to realize is that there are many more homes for sale compared to last year, up 40%% in Boulder County YoY.

The silver lining is that homes are staying longer on the market - rendering the opportunity for buyer agents to negotiate on their clients behalf.


What a great opportunity for you to actually find the home of your dreams, rather than close on the 4th home you put an offer on.


Know that anyone selling right now is highly motivated; they don’t want their home to sit on the market, and they don’t want to reduce their asking price.


Unlike 2021, YOU now have negotiating power. Whether that’s inspection objections, closing under asking, an adjustable-rate loan, or working with the seller on a creative mortgage solution, there are new opportunities for you to WIN in this market.

That is where negotiating a seller concession for a 2-1 Interest Rate Buydown comes in.

The seller, will pay the amount of interest it would take to make the buyer’s interest rate ///

  • 2% less in the first year

  • 1% less in the second year

  • Current market rate year 3 and beyond

  • The GOAL would be to refinance when the rates go down in Year 2.

Check out this example //

  • Year 1 - monthly payment = $2070.76

  • Year 2 - monthly payment = $2308.94

  • Year 3 on - monthly payment = $2558.16


Maximize Savings with Interest Rate Buydown

The rates are predicted by experts to go down during in 2024-2025. Reference article here.


Maximize Savings with Interest Rate Buydown

Do you have further questions about how this can work for you?

Email me at kelly.mccallister@8z.com

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