What You're Getting
A 1-0 buydown drops your mortgage rate by 1 percentage point for the first 12 months of your loan. After year one, you pay the full note rate for the remaining life of the loan.
Most lenders charge thousands of dollars for this. I'm covering it. The buydown cost gets funded at closing as a lender credit. The funds sit in escrow and subsidize your payment for the first 12 months. You bring nothing extra to closing for it.
You qualify at the full note rate. That is a key point. Underwriting is based on the year 2 payment, so you are approved for what you can afford long term. The reduced first-year payment is a head start, not a stretch.
The bottom line: Your payment drops in year one. Your rate is fixed for 30 years. I cover the cost. You lock by June 30, 2026.
Real Numbers
Here is what this looks like on a typical Houston purchase. Example: $400,000 home with 5% down ($380,000 loan) at a 7.00% note rate on a 30-year fixed mortgage.
| Period |
Rate |
Monthly P&I |
Monthly Savings |
| Year 1 |
6.00% |
$2,278 |
$250/mo |
| Year 2-30 |
7.00% |
$2,528 |
Full payment |
Principal and interest only. Does not include taxes, insurance, or HOA. Rates shown for illustration. Your actual rate depends on credit, down payment, and loan type.
Total year-one savings: approximately $3,000 in lower payments. That is money you keep.
Who Should Take This
The 1-0 buydown isn't right for every buyer, but it's a real edge for the right one.
- First-time buyers stretching to qualify. Year-one payment relief gives you breathing room while you settle into homeownership costs.
- Buyers expecting a raise or career step. Lower payment in month 1 to month 12. Full payment when your income catches up.
- Buyers planning to refinance. If rates drop in the next 12 months, you refi and skip ever paying the full rate. The buydown is a free runway.
- Buyers who want cash for furniture, repairs, or reserves. First-year savings free up cash for the actual move-in costs nobody warns you about.
Frequently Asked Questions
What's the catch?
None except the deadline. You have to lock by June 30, 2026. After that, this offer ends. Available to all qualified borrowers, all loan programs, all property types I lend on. Equal housing opportunity.
Who pays for the buydown?
I do. The cost is funded as a lender credit at closing on your behalf. You bring nothing extra to the table for it.
Can I combine this with a seller credit or builder incentive?
In most cases yes. I will structure the file to maximize stacked benefits without running afoul of agency guidelines. Talk to me about your specific deal.
Can I refinance during year one?
Yes. There is no prepayment penalty on conventional, FHA, or VA loans. If you refinance, unused buydown escrow funds are credited to your loan payoff.
Is this an adjustable rate mortgage?
No. Your note rate is fixed for 30 years from day one. The buydown subsidizes your payment in year one through an escrow account. Your actual loan rate never changes.
Do I qualify at the reduced rate or the full rate?
The full note rate. Underwriting uses the year 2 payment. This protects you by ensuring you can afford the full payment long term.
What loan types qualify?
Conventional, FHA, VA, and most jumbo programs allow temporary buydowns. We will pick the loan that fits your situation.
What if I sell before year two?
Any unused buydown escrow funds are credited to your payoff. You don't lose the unused portion.
Ben Helstein | NMLS# 1577314 | InSync Homes & Loans | Equal Housing Opportunity