Seller-Paid Rate Buydown Explained: Mortgage Relief for Buyers

A seller-paid rate buydown is a mortgage relief method where the seller pays to lower the buyer's mortgage interest rate. This can be a permanent or temporary solution. In a temporary buydown, for example, a 2-1 buydown reduces the owner’s rate by 2% in the first year and 1% in the second year. This approach can attract more buyers in a competitive housing market, impacting home sales and mortgage applications positively.