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

A 2/1 rate buydown offers a more affordable path to homeownership, helping give you a chance to settle in with reduced interest rates—and lower monthly payments—for the first two years of your loan. It’s a thoughtful way to make owning a home feel more manageable right from the start, making it an appealing choice, especially for first-time buyers ready to take that exciting step.

Here’s how a 2/1 rate buydown works to help make your mortgage easier to manage early on: 

• Year 1: Your interest rate is 2% lower. 

• Year 2: Your interest rate is 1% lower. 

• Year 3 and beyond: Your regular fixed rate takes effect for the remainder of your loan term. 

This setup gives you more room to breathe and budget during those crucial first years of homeownership. You can use the savings from your reduced monthly payments to furnish your dream home, pay down debts, or grow your nest egg. It’s a smart and flexible way to ease into your mortgage while keeping your focus on what matters most. 

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

Curious about how a 2/1 rate buydown could help you save money? Reach out to Pulte Mortgage for all the details. This strategic solution could be the key to bringing your dream home within reach!

Explore new homes today or browse more Centex® blogs.

Last Updated: 3/13/25