Interest Rates Got You Down? Here's the solution:
A buydown is a mortgage-financing technique that allows a homebuyer to obtain a lower interest rate for at least the first few years of the loan. The interest rate for a 3-2-1 buydown mortgage is reduced by 3% for the first year, 2% for the second year, and 1% for the third year. Typically, the seller or homebuilder (sometimes even the mortgage lender) covers the cost of the 3-2-1 buydown. Don't wait for rates to come down; make them come down and buy now while it's a buyer's market.
