Temporary Buydowns

Temporary buydowns are great solutions for buyers looking for a lower payment for those first few years. A temporary buydown fee can reduce the rate by 3%, 2% or just 1% per year.

For example, on a 2/1 buydown rate is reduced by 2% in the first year and 1% in the second year, then remains at the note rate for the remaining life of the loan for fixed-rate loans. These buydowns work great when the seller provides sales concessions to assist in the buydown program.

Product highlights

3/2/1 buydown, 2/1 buydown or 1/0 buydown options available
Available on most Conventional, FHA, and VA loans
Purchase transactions for primary and second homes only
Seller, builder, or lender must fund the buydown
Borrower’s rate cannot increase more than 1% per year including the buydown annual increase
Borrower qualifies for monthly payment at the note rate (if a fixed rate) not the temporary rate reduction

Borrower advantages

Frees up cash in the beginning of the loan, allowing buyer to ease into monthly payments
Extra cash is particularly handy for costs after purchasing a home (furniture, landscaping and home improvements, etc.)
If paid off through a sale or refinance, any remaining buydown fees are returned and paid against the balance

Realtor advantages

Provides the ability to offer an incentive to buyers without lowering the list price
Seller can buydown the rate for their buyer and create an optimal solution

What Clients Say About Us

“Daniel was great! Very efficient and very friendly. He always got back to us in a timely manner and always called us to explain things rather than just texting. Very personable guy! Very quick as well! We closed 2 weeks sooner than expected. I cannot say enough nice things about preferred rate, I definitely recommend them to everyone!”

Megan H

“I cannot put into words how amazing Dan and his team were during this whole process. They consistently went above and beyond to ensure I was fully taken care of. Not working with a realtor was a bad call on my part, but Dan was there every step; and a few bumps, offering unbiased advice and making sure I was taken care of. This momma and her girl tribe finally have a place of their own to call home; I am so thankful for Dan and his team!”

Savannah C

“This is my second home purchase using Dan. He is great to work with, he explains everything and is always there to answer any questions.

Update: When rates dropped early October 2025, Dan reached out to let me know and we knocked the refinance quickly. Dan is also always quick to answer questions no matter time or day of the week. No one else I’d rather do business with.”

Nate W

“We don’t have enough good things to say about Bihn Group! We tried to buy a house years ago and were consistently disappointed, houses sold out from under us, etc. so we gave up! We reached out to Dan this time around and he was so efficient and kind about everything! He answered all of our questions with honesty and we were so lucky to find our dream house as quickly as we did. Our son hasn’t stopped running around in our yard since we moved in! Thank you, Dan and Bihn Group for helping us achieve this goal in life!”

Taylor S

“Thank you for making a dream a reality. For years my husband, kids and I would talk about the perfect house we would have one day. It’s easy to find a house but difficult to get the keys and even more difficult to tell your kids this one didn’t work out. Dan, thank you for directing and clearing the path to our new home. We are extremely grateful!”

The McCulley’s