This blog was provided by our expert finance partners at Pulte Mortgage™.

A 2/1 rate buydown is a smart mortgage strategy designed to temporarily lower your interest rate and, as a result, your monthly payments for the first two years of your loan. This can be a helpful way to ease into homeownership with manageable payments, making it an attractive option for new homebuyers.

With a 2/1 rate buydown, your interest rate will be structured as follows: 

• 2% lower in the first year

• 1% lower in the second year 

• Then, your regular fixed rate applies for the rest of the loan term. 

This structure can help make homeownership more manageable during the first two years of your loan and give you some added financial flexibility. Use the savings from your lower monthly payments to furnish your new home, pay down existing debts, or boost your savings. It’s a great way to ease into your mortgage while focusing on your other financial priorities.

Here’s an example of how much you could save each month with reduced payments:

Wondering how much a 2/1 rate buydown could save you? Connect with Pulte Mortgage to learn more. This strategic option might just make your dream of homeownership easier than you think!

Explore new construction homes today or browse more Pulte® blogs.

Last Updated: 3/13/25