Temporary vs. permanent rate buydown: 2-1 buydown explained
Key takeaways
- Personal Finance / Mortgages Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations.
- When buyers are scarce, sellers often try to stand out by offering concessions like the 2-1 buydown, which is a temporary rate buydown that reduces mortgage payments for the first two years of a loan.
- A 2-1 buydown is an attractive concession when interest rates are high but are expected to drop.
Personal Finance / Mortgages Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure.
Temporary vs. permanent rate buydown: 2-1 buydown explained Sarah Brodsky · Contributing writer Wed, June 24, 2026 at 10:47 PM GMT+7 7 min read It's a buyer's market for U.S. housing, with 47% more sellers offering homes than buyers in April 2026, according to data from Redfin. When buyers are scarce, sellers often try to stand out by offering concessions like the 2-1 buydown, which is a temporary rate buydown that reduces mortgage payments for the first two years of a loan.
A 2-1 buydown is an attractive concession when interest rates are high but are expected to drop. Melissa Cohn, regional vice president at William Raveis Mortgage, points to a potential peace deal with Iran and falling oil prices as indications that mortgage rates may fall soon.