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225 Union Blvd
Lakewood, CO 80228
833-IAM-TBLO, 833-426-8256
lowrates@iamtblo.com
833-IAM-TBLO
A mortgage rate buydown is a financing strategy where the seller, builder, or buyer pays an upfront fee to temporarily reduce the interest rate during the first few years of the loan. This lowers your monthly payments early on, giving you time to adjust to homeownership costs. Use this calculator to see exactly how much you can save with a 1/1, 2/1, or 3/2/1 buydown.
A temporary rate buydown reduces your mortgage interest rate for the first one to three years of the loan. The cost of the buydown is typically paid upfront at closing — often by the seller, builder, or as part of a negotiated concession.
The rate is reduced by 3% in Year 1, 2% in Year 2, and 1% in Year 3. This offers the largest initial savings and is ideal when you expect your income to grow significantly.
The rate is reduced by 2% in Year 1 and 1% in Year 2. This is the most popular buydown option, offering meaningful savings with a moderate upfront cost.
The rate is reduced by 1% in Year 1, then returns to the full rate in Year 2. This is the most affordable buydown with a lower upfront cost.
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Call me toll free at (833-426-8256)
225 Union Blvd
Lakewood, CO 80228
833-IAM-TBLO, 833-426-8256
lowrates@iamtblo.com