Mortgage buydowns are nothing new, but have recently been making a big comeback with interest rates in 2022 into 2023. You may or may not have heard of them before, but you’ll definitely want to be familiar with the pros and cons of using a mortgage buydown before purchasing your next home.
History of Mortgage Buydowns
With homebuyers searching for ways to lower their mortgage rates, a previously popular home-selling strategy is making a comeback. Known as a temporary buydown and commonly referred to as 3-2-1 or 2-1 loans, this tactic was frequently used during the late 1970s and early 1980s when mortgage rates were as high as a staggering 18%.
The resurgence of temporary buydowns is well-timed as mortgage rates are currently at a…
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