What is a 2-1 Buydown in Mortgage Financing?

A mortgage 2-1 buydown is a type of mortgage financing option that allows a borrower to temporarily lower their monthly mortgage payments. This option can be a great way for borrowers to afford a home in the Boise, Idaho area that might otherwise be out of their price range.

2-1 Buydown Mortgage

How a 2-1 Buydown Mortgage Works

The way a 2-1 buydown works is that the lender agrees to temporarily lower the interest rate on the mortgage for the first two years of the loan. For example, if the current market interest rate is 4%, the lender may agree to lower the interest rate to 3% for the first two years of the loan. This means that the borrower's monthly mortgage payment will be lower during those two years.

In the third year of the loan, the interest rate will increase back to the original market rate, and the borrower's monthly mortgage payment will also increase. However, by this time, the borrower will have had two years to save money, which will help them to afford the higher monthly payments. Another element of the loan that may change within that time frame is the buyer's equity. It is possible that they have gained enough equity in the home to remove the mortgage insurance which can decrease the payments. Read our blog on Mortgage Insurance to learn more.

The Benefits of a 2-1 Buydown Mortgage

A mortgage 2-1 buydown can be a great option for borrowers who are looking to purchase a home but may not have the funds to afford the monthly payments at the current market interest rate. It can also be a good option for borrowers who expect their income to increase in the future, such as new graduates or those who are in the process of starting a new job.

Evaluating if a 2-1 Buydown is Right for You

It's important to note that not all lenders offer 2-1 buydown mortgages, and the terms and conditions of the loan may vary. Therefore, it's essential for borrowers to shop around and compare different options before choosing a lender. Also, be sure that you feel confident that you are able to pay the higher monthly mortgage payments in a few years when the interest rate goes back up. Discuss with your lender the options you have should your financial situation not become better after the first two years so you can be prepared for the next steps.

To learn more about the other financing options read our blog on How to Choose the Right Mortgage When Buying Your Idaho Home.


If you’re considering this type of loan in Boise, Idaho, meeting with an experienced lender would be beneficial to determine if this is a smart decision for your specific needs. Once you have determined your mortgage situation, contact one of our experienced agents to help you begin shopping for homes in the Boise, Idaho area that are within your budget.

Ready to start home shopping? Contact us!


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248 Properties
Page 1 of 21
$400,000
Neighborhood: 0 Not Applicable
4
Beds
2
Baths
1,228
Sq.Ft.
1980
Year Built
109
Days on Site
98880694
MLS
REMODELED, PRIME LOCATION, single level home in the heart of Caldwell. This is an excellent opportunity for investors seeking an affordable yet updated property. This home offers a blend of style,...
$400,000
Neighborhood: Lighthouse Estates
3
Beds
2
Baths
1,415
Sq.Ft.
2014
Year Built
34
Days on Site
98888450
MLS
Are you looking for a low maintenance home? This home comes with solar panels and grass only in the front yard! This 3 bedroom 2 bathroom split bedroom open concept plan with a large open living...
$400,000
Neighborhood: Winners
3
Beds
2
Baths
1,058
Sq.Ft.
1989
Year Built
21
Days on Site
98889541
MLS
Looking for a cozy home in the heart of Boise? Look no further! This lovely property is situated on a corner lot, perfect for those who want a low-maintenance lifestyle. The home renovations have...
$399,999
Condo: Shalimar Terrac
3
Beds
3
Baths
1,724
Sq.Ft.
1984
Year Built
71
Days on Site
98884695
MLS
Welcome to our newly remodeled townhome! This stunning 3 bedroom 2 bath townhome is a perfect blend of modern elegance and natural beauty. Situated on over 7 acres of community parks, you'll have...
$399,999
Neighborhood: Raintree Meadows
3
Beds
2
Baths
1,719
Sq.Ft.
2005
Year Built
8
Days on Site
98888509
MLS
Located in the beautiful established neighborhood in South Nampa. This home features a three car garage with coveted RV parking. It also includes a huge yard, with only two neighbors on two of the...
$399,999
Neighborhood: Westview
3
Beds
2
Baths
1,350
Sq.Ft.
1975
Year Built
7
Days on Site
98890550
MLS
Welcome to your cozy Boise haven! This charming single-level home is a true gem, nestled in a peaceful, low-traffic cul-de-sac. The heart of this home is a beautiful wood-burning fireplace, creating...
$399,995
Neighborhood: Heirloom Ridge
3
Beds
2
Baths
1,586
Sq.Ft.
2023
Year Built
116
Days on Site
98880266
MLS
"The Collins" is an artful combination of thoughtful design and chic touches. The great room and casual dining area are central to the large rear patio and well-appointed kitchen complete with an...
$399,990
Neighborhood: Meadow View Sub
3
Beds
2
Baths
1,152
Sq.Ft.
1975
Year Built
113
Days on Site
98880524
MLS
Very well maintained home, new furnace, water heater, air conditioner. Large corner lot with fruit trees and large covered deck. Home is located in the heart of Meridian, great location. Close access...
$399,990
Neighborhood: Graycliff
3
Beds
2
Baths
1,287
Sq.Ft.
2023
Year Built
102
Days on Site
98881811
MLS
This ENERGY STAR certified single-story features an open floor plan, luxury vinyl plank flooring throughout the main living areas and a open great room. Modern kitchen showcases quartz countertops,...
$399,990
Neighborhood: Maple Leaf
3
Beds
3
Baths
1,395
Sq.Ft.
2023
Year Built
74
Days on Site
98884587
MLS
* Fall 2023 Savings Promo, up to $25K * The 1743 square foot Middleton combines luxury and space in a two-story home plan. The first floor features an expansive living room coupled with a beautiful...
$399,990
Neighborhood: Aberdeen Springs
3
Beds
3
Baths
1,851
Sq.Ft.
2023
Year Built
64
Days on Site
98885433
MLS
Live an elevated life in the Dryden 1851. On the main floor, you'll find an open living room, kitchen, and dining area that has plenty of room to move, plus large windows to allow in natural light....
$399,990
Neighborhood: Lansing Heights
4
Beds
3
Baths
60,984
Sq.Ft. Lot
1994
Year Built
61
Days on Site
98885731
MLS
Welcome home...to the project home of your dreams! This 2500+sf home-to-be is an active renovation project. We are in the process of getting final drawings and permits to convert this shell of a home...
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