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Half Buy Down
Half Buy Down - With a half buy down mortgage, also known as a 2/1 buy down, you are able to get a lower initial interest rate, similar to that of an adjustable-rate mortgage, but with the stability of a fixed-rate mortgage. After the first year, the interest rate will increase by one percent and then will increase by one percent again at the end of the second year of your mortgage. After that, your interest rate will remain at a fixed rate for the remainder of the loan. This type of loan will allow you to qualify for a higher loan amount and is ideal if you plan to be making more money a few years from the time that you purchase your home.
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