The first
push.
Temporary rate buydowns in Orange County and across California
A temporary buydown, also called a 3-2-1 or 2-1 buydown, lowers your mortgage rate for the first one to three years, then the payment steps up to the full rate. The seller, a builder or you can pay for it at closing. You qualify at the full note rate, so the later payment is one you already qualified for.
Sound like you?
Sound
like you?
“Nobody is waiting for a rate. They are waiting for a payment.”
Nervous about today's rates?
Three years of lower payments. Year four is the full payment. If rates fall before then, you can still refinance.
Payment stopping the offer?
The seller or the builder can pay for the first push. Or split it with you.
Selling, and no offers?
Offer to pay for the buyer's first push instead of cutting the price. We show you both numbers side by side.
See the step-down.
Pick a version, set the price and the rate. Every number updates as you go.
Monthly principal and interest on $800,000
- Year 14.375%$3,994$1,531 less
- Year 25.375%$4,480$1,046 less
- Year 36.375%$4,991$534 less
- Year 4 on7.375%$5,525the full payment
Total cost of the 3-2-1, paid at closing
$37,334
The seller, a builder or you can pay it. It's often an easier ask than a price cut.
Example only, not a quote. Principal and interest only; mortgage insurance, taxes and insurance are not included. You qualify at the full note rate. Buydown funds are limited by loan rules.
Temporary buydown
Questions,
answered.
What is a temporary buydown?
It lowers your interest rate for the first one to three years, then the rate goes back to normal for the rest of the loan. A 2-1 buydown means your rate is 2% lower in year one and 1% lower in year two. A 3-2-1 stretches it across three years. A lower rate up front means a lower payment while you settle in.
Who pays for a buydown?
Usually the seller or the builder, as a credit at closing. It often costs them less than dropping the price, and it puts more money in your pocket in the early years. You can pay for it too, or split it.
Do I have to qualify at the lower start rate?
No, and that is a good thing. You qualify on the full rate, so you are never approved for a payment you cannot keep up once the buydown ends.
What is the difference between 1-0, 2-1, and 3-2-1?
How long the break lasts and how big it is. 1-0 lowers year one by 1%. 2-1 lowers year one by 2% and year two by 1%. 3-2-1 spreads it over three years at 3%, then 2%, then 1%.
What if rates drop while the buydown is running?
Year four is the full payment. If rates fall before then, you can still refinance.
I'm selling and not getting offers. Can this help?
Offer to pay for the buyer's first push instead of cutting the price. We show you both numbers side by side.
Is a buydown better than paying points?
They are different tools. A buydown is temporary relief that someone else usually pays for. Points lower your rate for the whole loan, and you pay for that up front. I'll run both so you can see which one wins for you.
Does it work with every loan?
The three-year version is not offered on FHA loans or with the 40-year interest-only loan. Two-year and one-year versions are also available.
Sound like you?
Text me what you're trying to do. I'll tell you if this loan fits, and what the payment looks like.
Also called a temporary rate buydown: 3-2-1, 2-1 or 1-0.
You qualify at the full note rate. Buydown funds are paid at closing and limited by loan rules. Two-year and one-year versions are also available. The three-year version is not offered on FHA loans and is not available with the 40-year interest-only loan. Rates change daily. Examples are estimates, not quotes. Not a commitment to lend.
By Brett Hickman, NMLS #2010859, Home First Financial, NMLS #2465048. Updated September 24, 2026.