It's Time Again for A Buydown
With interest rates remaining stubbornly high you don't have to wait to buy your dream mountain home. With potential higher rates coming waiting makes no sense either. A 3‑2‑1 buydown is a temporary interest‑rate reduction that makes the first three years of homeownership more affordable. On a $1,000,000 loan at 6.5%, your payment starts at 3.5% in Year 1, then steps up gradually until reaching the full rate in Year 4.
This saves you $24,336 in Year 1, $16,236 in Year 2, and $8,364 in Year 3, for a total of $48,936 in reduced payments.
It’s a powerful negotiation tool: instead of asking for a price reduction, you can ask the seller to fund the buydown, giving you meaningful monthly relief without reducing the seller’s net proceeds as dramatically.
Interest Rates Under a 3‑2‑1 Buydown
Year 1: 3.5%
Year 2: 4.5%
Year 3: 5.5%
Year 4+: 6.5% (full note rate)
Here's the savings at a $1 million loan amount
