Ross Mortgage News

Ease Into Homeownership with a 2/1 Buydown

October 28, 2022

When interest rates were at historic lows, a typical fixed rate mortgage loan was all most people needed. As of October 2022, rates have risen. Rates are at long-term averages; however, they are considerably higher than what we’ve experienced in recent years. 

When facing higher interest rates, homeowners can expect higher monthly payments. The good news? Ross Mortgage has a loan program to help guide you into homeownership! 


What is the 2/1 Buydown Program?

The Ross Mortgage 2/1 Buydown Program can help lower your monthly payments. With the buydown loan program, you will receive a 30-year fixed rate loan with an interest rate that is discounted 2% during the first year and 1% the second year.

Benefits and Specifics

With lower monthly payments, you can ease your way into your new home. The lower payments step up at the end of the first and second year then remain fixed for the remainder of the loan. A 2/1 Buydown comes with extra up-front costs that are often paid by the seller or builder. 

​​Historically, rates can fluctuate. There may be a chance during the two year period where you can refinance into a lower rate and you will never see the higher starting rate.

What Ross Mortgage Can Do 

The 2/1 Buydown Program is one way today’s homebuyers can make buying their dream home a reality. As champions for prospective homebuyers, Ross Mortgage offers unique loan programs that will set you apart from the competition and prepare you for one of the biggest decisions of your life. 

Check out the Ross blog for information on loan programs you may be eligible for, including our Guaranteed Pre-Approval and Lock and Shop programs. 


Additional details about the 2/1 Buydown Program vary according to your specific homebuying scenario. Ross Mortgage professionals are ready to walk you through the entire process. Contact our team today if you have questions or would like to learn more!