2-1 Buydown Explained for Texas Home Buyers (Real Numbers)

2-1 buydown explained for Texas home buyers, with real payment math. If mortgage rates after the September 2026 Fed rate hike have you nervous, a 2-1 buydown can lower your monthly payment for your first two years in the home. I'm Arlicia Jones, NMLS 1550570, a licensed Texas mortgage broker. In this video I walk you through exactly how a 2-1 buydown works, who actually pays for it, and when asking a builder or seller for a buydown makes more sense than asking for a price reduction. You'll see a simple example on a $500,000 loan: how the rate steps down 2% in year one and 1% in year two, what that does to your monthly payment, and what happens in year three. I also answer the questions I get most. What if rates drop and you want to refinance? Does a 2-1 buydown cost the buyer anything? And when is a temporary buydown the wrong move compared to buying points for a permanent rate? If you're relocating to North Texas and buying in Prosper, Frisco, Celina, McKinney, or anywhere in North Dallas, your budget is usually tightest in the first two years. You're adjusting to Texas property taxes, new bills, and a new cost of living. This breakdown helps you decide whether to negotiate the price or the rate before you write an offer. Payment examples are for illustration only and are not a rate quote. ⏱️ Chapters 0:00 Rates Are Up. What Is a 2-1 Buydown? 0:59 How the Rate Steps Down in Years 1, 2, and 3 1:35 Moving to DFW? A Quick Note 2:40 Who Actually Pays for the Buydown 3:03 2-1 Buydown vs. Price Reduction 3:30 Why the First Two Years Matter When You Relocate 4:00 Monthly Payment Example on a $500K Loan 5:18 What If Rates Drop? Do You Lose the Buydown? 5:39 Does a 2-1 Buydown Cost the Buyer Anything? 6:21 When a Buydown Is Not the Smart Move 7:03 Get Your Numbers Run Before You Write an Offer 📞 Want to know if a 2-1 buydown fits your purchase? Book a free North Texas Family Move Strategy Call: https://calendly.com/loansbyarlicia/m... 📋 Free North Texas Tools Find Homes Near North Dallas: https://form.jotform.com/262324094991058 Frisco vs. Prosper Family Relocation Scorecard: https://form.jotform.com/262325200354041 Frisco vs. McKinney Family Fit Check: https://form.jotform.com/262507498373063 👋 About Us Luke and Arlicia Jones moved from South Florida to Prosper, Texas in 2022 and now help families relocating to North Texas with both the home and the mortgage. Luke Jones, Texas REALTOR®, Relocation Buyer Specialist, eXp Realty, TX License #793146 Arlicia Jones, NMLS 1550570, Licensed Texas Mortgage Broker Elite Lending Solutions, Inc., Company NMLS 1829246 📱 Call or Text: 305 747 9311 📧 Email: [email protected] 📸 Instagram: Instagram: dallas_home_collection 💬 If you were buying today, would you ask the seller for a price cut or a 2-1 buydown? Tell me in the comments. Equal Housing Opportunity. All loans subject to credit approval and program guidelines. Texas Real Estate Commission Information About Brokerage Services and Consumer Protection Notice available upon request. #21Buydown #BuyingAHomeInTexas #MovingToTexas