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Save on Monthly Mortgage Payments with a 1-2-3 Mortgage Buydowns

Updated: Dec 16, 2022

Are you a homebuyer looking for a way to make your monthly mortgage payments more manageable? Look no further than a 1-2-3 mortgage buydown.



A 1-2-3 mortgage buydown is a financing option that allows homebuyers to temporarily reduce their monthly mortgage payments during the first few years of the loan. Here's how it works:

  1. At the beginning of the loan, the lender provides a subsidy to the borrower, which is used to reduce the interest rate on the mortgage. This results in lower monthly payments for the borrower.

  2. After the first year, the interest rate on the mortgage increases slightly, but the monthly payments are still lower than they would be with a traditional mortgage.

  3. In the third year, the interest rate increases again, but the monthly payments are still lower than they would be with a traditional mortgage.

By the fourth year of the loan, the interest rate on the mortgage is back to its original level, but the borrower has already enjoyed three years of lower monthly payments. This can make it easier for homebuyers to afford their mortgage payments, especially in the early years when they are still getting established in their new home.


If you're interested in taking advantage of a 1-2-3 mortgage buydown, get in touch with us today! Our team of experienced mortgage professionals can help you explore this financing option and determine if it is right for you. Don't miss out on the opportunity to save on your monthly mortgage payments - contact us today to learn more.

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