A 3-2-1 mortgage buydown is a financing option that lowers your interest rate for the first three years of your loan. In the first year, your rate is reduced by 3 percentage points, then by 2 points in the second year, and by 1 point in the third year. This means your monthly payments are lower at the start, making it easier to manage your budget as you adjust to homeownership. If you qualify, a 3-2-1 buydown can make homeownership more accessible and manageable, particularly for those who expect their financial situation to improve over time.
