A Great Program That Benefits Buyers

A Great Program That Benefits Buyers

  • Denise Graves
  • 12/6/22

The 2-1 buydown is a great program for buyers who are worried about rates.


Are you wanting to buy a house but are concerned about the higher interest rates? If so, we have some exciting news for you! We recently sat down with Mario Galdos, a loan officer at Legacy Mutual Mortgage, and he told us about their 2-1 buydown program. 

Legacy Mutual Mortgage has been encouraging the use of buydowns lately because they can be very beneficial for buyers, especially those who expect to get a wage increase in the next couple of years or who are going to pay off some of their debt soon. 

The way that their 2-1 buydown program works is for the first year of the loan, the buyer will pay 2% below the market interest rate. Also, the 2-1 buydown program goes with a 30-year fixed loan. For example, let’s say the market interest rate is 7.5% when you buy. That means that for the first year, you’ll be paying 5.5%, and then it will move to 6.5% in the second year. Then, from the third year on, the rate will be the normal market rate. 


"The 2-1 buydown program can greatly benefit buyers."


This buydown will cost about 2.25% multiplied by the loan amount and must be paid for by the seller. Then, that money stays with the buyer, even if they refinance when rates go down. It will be deposited into an escrow account. 

Legacy Mutual Mortgage requires a credit score of 680 to qualify for this program. Also, it works for FHA, VA, USDA, and conventional loans. Overall, this program can greatly benefit buyers, especially if they have the mindset of “marry the house, date the rate.” If you are a buyer, know that you have options! Don’t lose a house you love just because of mortgage rates. 

This is just one of the programs that Legacy Mutual Mortgage offers, so get in touch with Mario to hear more. You can reach out to us anytime, and we would be happy to get you in touch with him and answer any questions that you have. Call or email us anytime. 



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