This loan product will help you get a lower interest rate for two years.

Can you still get a 5% interest rate loan as a buyer? The short answer is yes. There’s still an opportunity for you to get a loan with a 5% interest rate—and it’s called a 2-1 buydown. It works a little bit like this: For the first year of the loan, your rate would be 2% lower than the market rate. Then in the second year, it’s 1% lower. Then in the third year, it goes up to the normal market rate.

For example, if the market rate is 7% right now, the first year would be 5%, then 6% in the second year. To make it simpler, here’s another example: If you get a $250,000 loan, the savings in the first year is $300. In that second year, you’re saving $150.

Getting a buydown costs money, of course, but it can be paid for by the seller. In our current market, many sellers are giving these kinds of concessions. If you want to know more about this product, give us a call or send us an email. We’re always here to help!