Lower Your Interest Rate—Paid by the Seller

This temporary rate reduction makes homeownership more affordable upfront while keeping your long-term financing in place. 

A seller-paid buydown is a strategy where the seller covers the cost to temporarily lower your mortgage interest rate. Common options are:

2-1 Buydown: 2% lower the first year, 1% lower the second, then regular rate

1-0 Buydown: 1% lower for the first year

Great for buyers who expect their income to increase or plan to refinance later.

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Buydowns help bridge the gap when rates are high, giving buyers breathing room early on—while sellers use it as a negotiation tool.

💰 Lower monthly payments for 1–3 years
🙅‍♂️ No extra fees for the buyer
📉 Offsets high rates in today’s market
🤝 Helps deals close faster
🏡 Easier path to homeownership

Q: Does the buyer pay for the buydown?
No. The seller covers the buydown cost as part of the closing terms.

Q: Is it available for all loan types?
Most lenders offer buydowns on conventional, FHA, and VA loans.

Q: Can it be combined with down payment assistance or seller credits?
Often, yes—ask your lender for details.

At The Federal Savings Bank, we make home financing easy. Whether you're buying, refinancing, or just exploring options, we’re here to help. Located at 1150 South Ave, Suite 304B, Staten Island NY 10314, we offer competitive rates, great service, and a smooth and fast loan process from start to finish. 

Company NMLS: 411500

Texas Mortgage Disclosure: Consumers wishing to file a complaint against a mortgage banker or licensed residential mortgage loan originator should contact the Texas Department of Savings and Mortgage Lending (SML). Visit [www.sml.texas.gov](https://www.sml.texas.gov) for instructions and to obtain a complaint form. Mailing Address: 2601 North Lamar, Suite 201, Austin, TX 78705 • Toll-Free: 1-877-276-5550 (Required per 7 TAC §80.200(b))