Buydown Refinance

Want significant monthly savings right now without resorting to an adjustable-rate mortgage? A buydown refinance temporarily lowers your interest rate for the first few years of your new loan by using a portion of your home’s equity to “buy down” the rate.

How It Works:

A buydown refinance is a fixed-rate loan. But with a feature like a 2-1 buydown, your equity covers the gap to artificially lower your payment for the first two years.

• Year 1: Your effective interest rate is 2% lower than your locked-in rate.
• Year 2: Your effective interest rate is 1% lower.
• Year 3 & Beyond: You return to the permanent, fixed rate for the remainder of the loan.

Why It Is So Popular:

In a high-rate environment, a 2-1 buydown feature provides immediate, substantial cash-flow relief that standard refinancing simply cannot match. It gives you the rock-solid security of a fixed-rate loan, while freeing up hundreds of dollars a month in the short term to redirect toward investments, renovations, or savings.

Available for both Conventional and VA loans, the buydown refinance is one of the most flexible and useful ways to leverage your equity today.