solutions for high interest rates

how Do 0-1 and 2-1 buydowns work?

Interest rates can be a daunting hurdle for homebuyers, especially in today’s financial climate. If you’re living in Northern Colorado and dream of owning a home, you may be facing steep interest rates that feel overwhelming. But guess what? You’ve got options. Enter 0-1 buy down and 2-1 buydown—a couple of flexible solutions to ease your financial burdens.

Understanding the 0-1 Buy Down


A 0-1 buy down is a unique financing option where the interest rate on your mortgage is lowered for the first year. Sounds enticing, right?


The 0-1 buy down offers immediate relief from high-interest rates, enabling you to move into your dream home without the initial financial stress.

How it Works for Homebuyers

Think of it as a discount coupon for your mortgage. You pay a bit more upfront, and in return, you get lower interest payments for the first year. Can you already hear the sigh of relief?

Understanding the 2-1 Buy Down


The 2-1 buy down is similar to the 0-1 buy down but extends the reduced interest over two years. That’s two years of reduced payments!


Imagine the possibilities with two years of reduced interest. It can free up funds for home improvements, or maybe that family vacation you’ve been postponing.

How it Works for Homebuyers

With a 2-1 buydown, you’re locking in a lower interest rate for two years, gradually returning to the standard rate. It’s like stretching the joy of a birthday celebration over a weekend!

Comparison: 0-1 Buy Down vs 2-1 Buy Down

Both these options offer breathing room, but the right choice depends on your individual circumstances. Consult a mortgage expert to tailor the best approach for you.

How Northern Colorado Residents Can Benefit

Property Market Insights

Northern Colorado’s property market is thriving, but interest rates can be a barrier. Buydown options can open doors for you.

Working with the Right Lenders

Finding great lenders such as Jamie Laskie at Guild Mortgage, or JB Corbeil at Academy Mortgage, who offer these buydowns is key. Seek out local expertise and friendly service.

Tips for a Successful Buydown Experience

Engaging a Real Estate Expert

Your real estate agent can help you understand how you can leverage a temporary buydown as part of your offer strategy to help you go under contract on your home.

Assessing Your Financial Situation

Analyze your budget and future financial goals. A buydown should align with your overall financial planning.


0-1 and 2-1 buydowns are tools that can turn your homeownership dreams into reality in Northern Colorado. By understanding how they work and seeking the right professional assistance, you can ease the sting of current interest rates. Happy house hunting!


Q: Can I use both 0-1 and 2-1 buydowns? A: Generally, you choose one or the other based on your financial situation and needs.

Q: Are there any hidden fees with these buydowns? A: Transparency with your lender is vital. Make sure to understand all costs involved.

Q: What happens after the buydown period ends? A: Your interest rate will revert to the original rate agreed upon in your mortgage.

Q: Can I apply for a buydown if I already have a mortgage? A: Buydowns are typically negotiated during the initial mortgage process, so it may not be possible later.

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