Understanding Temporary & Permanent Mortgage Rate Buydowns
How Phoenix buyers are using seller-paid 2-1 and 3-2-1 buydowns to secure effective interest rates in the 4% and 5% range.
How the 2-1 Buydown Works
If the prevailing market note rate is 6.5%, a 2-1 buydown allows you to make payments at 4.5% in Year 1, 5.5% in Year 2, and 6.5% in Year 3 through Year 30. The difference between the actual payment and the reduced payment is deposited into an escrow account by the seller at closing.
Builder Incentives in Buckeye vs. Resale in Gilbert
National production builders in the West Valley (Buckeye, Goodyear) frequently offer aggressive in-house financing programs offering permanent 30-year fixed rates as low as 4.99% through forward rate commitments. In resale markets like Gilbert, negotiated seller concessions achieve similar relief.
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Whether you are calculating a rate buydown on a new construction home in Buckeye or structuring an inspection request in Gilbert, Tamara provides direct, fiduciary representation.
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