The Houston real estate market continues to show resilience, with steady demand from buyers and strong opportunities for sellers. As mortgage rates remain higher than in recent years, many buyers are searching for creative ways to make homeownership more affordable without waiting on rates to drop. One popular financing tool in today’s market is the 2-1 buydown program, offered by many lenders.

A 2-1 buydown is a temporary interest rate reduction that lowers your mortgage rate for the first two years of your loan. In the first year, your rate is typically reduced by two percentage points, and in the second year by one percentage point. By the third year, the loan returns to the original fixed rate. This structure allows buyers to enjoy significantly lower monthly payments upfront, giving them breathing room to adjust to their new home while easing financial pressure.

For example, if your lender offers a 30-year fixed mortgage at 6.5%, the first year under a 2-1 buydown would reduce your rate to 4.5%, then to 5.5% in the second year, before returning to 6.5% in year three. This can save buyers thousands of dollars in the early years of homeownership and provide flexibility to refinance later if rates decrease.

In today’s competitive Houston market, using a 2-1 buydown could be the key to making your dream home a reality.

📞 Contact Deidra Odom-Clark today to explore your real estate options and learn how to maximize your buying power in Houston!