2-1 Buydown with Progressive Builders & Treadstone

Progressive Builders has partnered with Treadstone Funding in their 2-1 Buydown program. 2-1 Buydown is a finance program to help new homeowners temporarily lower their mortgage interest rate for the first two years. This program is only available for conventional loans on primary residences.

Learn more about the 2-1 Buydown program, and how it can help you finance your Progressive Builders dream home!

What Is a 2-1 Buydown?

2-1 Buydown is when the seller or builder helps fund money to reduce the home buyer’s mortgage for the first two years of their loan. A 2% discount is offered for the first year of the loan, and 1% is applied for the second year. In the third year, the interest rate returns to the original rate for the remainder of the mortgage term.

How Does It Work?

The 2-1 Buydown offers a way to ease the transition into homeownership with a lower rate during the first two years of your mortgage. It is an excellent opportunity for those who have never purchased a home before. 

For example, let’s say you get a conventional home loan with a locked-in interest rate of 7.5%. During your first 12 months, you will only pay a 5.5% interest rate, making your monthly payment much lower than the original cost. For months 13-24, your interest rate will increase by 1%, meaning you will be paying a 6.5% interest rate. After 24 months, your interest rate will return to the original 7.5% for the remainder of the loan.

Why Is This A Great Option?

Buydowns are great for buyers who need some extra flexibility with their mortgage. This flexibility can allow the buyer to use their money for other items like furniture, paying debts, or making additional payments.

With interest rates on the rise, this can be a great way to temporarily lower your monthly payments until you have better options for refinancing.

If you know of anyone looking to purchase a home, we encourage you to share this blog post with them.

If you’re interested in buying a home with a 2-1 Buydown, click the contact link below to call or email Progressive Builders!