How You Could Get a FREE 1-1 Mortgage Buydown When Buying a Home

If mortgage rates are one of the biggest things holding you back from buying a home right now, I want you to know about a strategy that could make a real difference in your monthly payment.

It's called a 1-1 temporary mortgage buydown.

And depending on the home, the seller, your loan program, and how we structure the offer, I may be able to help you negotiate a 1-1 buydown at no out-of-pocket cost to you for the buydown itself.

In other words, the seller may be able to cover the cost through an allowable credit.

That could lower the rate used to calculate your mortgage payment by 1% for the first two years.

If you're buying in Modesto or anywhere throughout The Central Valley, this is absolutely something worth asking me about before you assume today's payment is out of reach.

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💰 What Is a 1-1 Buydown?

A 1-1 buydown is a temporary way to reduce your mortgage payment during the first two years of the loan.

Let's say your full note rate is 7%.

With a 1-1 buydown, your payment during the first year would be calculated as if your rate were 6%.

During the second year, it would still be calculated using that reduced 6% rate.

Then beginning in year three, your payment returns to the full 7% note rate for the remainder of the loan.

The actual mortgage rate on your loan isn't permanently changed. Instead, money is set aside at closing to cover the difference between the reduced payment and the full payment during those first two years.

That's why negotiating the deal correctly matters.

🤯 And Yes — We May Be Able to Get the Seller to Pay for It

This is the part I really want buyers to understand.

A temporary buydown has a cost.

But depending on the situation, you may not have to be the one paying it.

If a seller is willing to negotiate, we may be able to structure the offer so that the seller provides a credit that covers the cost of the 1-1 buydown.

That means you could potentially get the benefit of the lower payment for the first two years without paying the buydown cost out of your own pocket.

That's why I tell buyers not to look only at the asking price.

Sometimes the way we structure the offer can matter just as much as the price itself.

📉 What Could 1% Do to Your Monthly Payment?

Let's use a simple, purely hypothetical, example.

Assume you have a $400,000, 30-year mortgage with a full note rate of 7%.

Your approximate principal and interest payment at 7% would be:

$2,661 per month

Now let's look at the same loan with the payment calculated at 6% during the first two years.

Your approximate principal and interest payment would be:

$2,398 per month

That's approximately:

$263 less per month

Over the first 24 months, that's roughly:

$6,300 in reduced payments.

That's money that could stay in your pocket during the first two years of homeownership.

This example is for illustration only and includes principal and interest only. Property taxes, homeowners insurance, mortgage insurance, HOA dues, and other costs would be additional. Actual rates, payments, credits, and loan-program rules vary.

🏡 Why This Can Be Better Than Just Asking for a Price Reduction

When buyers hear that a seller is willing to negotiate, the first thought is usually:

"Let's ask them to lower the price."

Sometimes that's the right move.

But not always.

A price reduction may not change your monthly payment as much as you expect.

In some situations, using that same negotiating power toward a seller credit for a temporary rate buydown can create a much more noticeable difference in your payment during the first couple of years.

That's why I like to look at the entire deal instead of focusing on one number.

Could we negotiate the price?

Could we ask for closing costs?

Could we get the seller to fund a 1-1 buydown?

Could a combination of those strategies make the purchase work better for you?

Those are the conversations we should be having before we write the offer.

📆 Why Lowering the Payment for the First Two Years Can Help

The first couple of years after buying a home can come with a lot of expenses.

Moving costs.

Furniture.

Appliances.

Landscaping.

Paint.

Repairs.

And plenty of little things you don't even think about until you get the keys.

Having a lower mortgage payment during those first two years can give you some extra breathing room while you settle into the home.

Then in year three, the payment returns to the full amount you originally qualified for.

That's important.

A 1-1 buydown isn't about buying a home you can't afford and hoping something changes later.

It's about potentially making the first couple of years more comfortable while still qualifying for the full payment from the beginning.

⚠️ A 1-1 Buydown Is Temporary

This is different from permanently buying down your mortgage rate.

With a temporary 1-1 buydown, the reduced payment applies only during the first two years.

After that, your payment returns to the payment based on the full note rate.

A permanent rate buydown works differently because money is paid upfront to permanently reduce the interest rate for the life of the loan.

Which option makes more sense depends on your loan, your plans, the property, available seller credits, and what your lender allows.

That's why I want my buyers looking at the actual numbers before deciding which strategy is best.

🔑 Ask Me How to Get a FREE 1-1 Buydown

If you're looking at homes right now and the monthly payment is making you hesitate, call me before you decide to sit out the market.

There may be homes where the seller is willing to negotiate enough for us to structure a 1-1 buydown at no out-of-pocket cost to you for the buydown itself.

Not every property or loan will qualify, and seller credits are subject to the seller's agreement and your lender's guidelines.

But if the opportunity is there, I want to make sure you know about it.

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🏠 Ready to Start Looking at Homes?

If you're buying in Modesto, Riverbank, Ripon, Manteca, Ceres, Turlock, Oakdale, Escalon, or anywhere throughout The Central Valley, I'll help you look at more than just the home itself.

We'll look at the price, seller motivation, financing options, available credits, and how we may be able to structure the offer to make the monthly payment work better for you.

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🏡 Thinking About Selling Too?

If you're thinking about selling your home, this strategy can matter on your side of the transaction too.

In the right situation, offering a buyer credit toward a temporary rate buydown could help make your property more attractive without immediately jumping to a large price reduction.

If you're thinking about selling in Modesto or anywhere throughout The Central Valley, I'll help you look at your pricing, competition, buyer activity, and the different strategies we can use to position your property.

👉 Thinking About Selling? Start Here

Want to know how you could get a FREE 1-1 buydown on your next home?

Call me and ask about the 1-1 buydown. I'll help you look at the homes where this strategy may work, connect you with the right lender, and show you what a 1% lower rate for the first two years could do to your payment.

Don't assume the payment you see today is the only option. Reach out to me for the details.