If you’re considering purchasing a condo at Argenta in Aurora, you may have heard about a 2/1 buydown as a financing option. But what exactly does that mean, and how can it benefit you as a buyer? Let’s break it down.
What is a 2/1 Buydown?
A 2/1 buydown is a financing option that temporarily reduces your mortgage interest rate for the first two years of your loan. This can help lower your initial monthly payments, making homeownership more affordable in the short term while allowing you to ease into your full mortgage payment over time.
Here’s how it works:
- Year 1: Your interest rate is reduced by 2%
- Year 2: Your interest rate is reduced by 1%
- Year 3 and beyond: Your loan reverts to the standard fixed interest rate for the remainder of the term
Why Consider a 2/1 Buydown?
A 2/1 buydown can be an excellent tool for buyers who expect their income to increase in the next few years or who simply want to ease into mortgage payments more gradually. It can also be an attractive option in today’s market, where buyers are looking for ways to combat higher interest rates and make homeownership more affordable.
How Much Does a 2/1 Buydown Cost?
The cost of a 2/1 buydown varies depending on the loan amount, not the purchase price. As a general rule of thumb, you can estimate the buydown cost at approximately 2% of the sales price. Below are a few examples of estimated costs based on different loan amounts:
| Loan Amount | Estimated 2/1 Buydown Cost |
| $300,000 | $6,992 |
| $400,000 | $9,323 |
| $500,000 | $11,654 |
| $600,000 | $13,985 |
| $700,000 | $16,316 |
For example, if you’re securing a $400,000 loan (which would typically correlate to a $500,000 purchase price with a 20% down payment), the estimated cost of the 2/1 buydown would be $9,323.
Who Pays for the Buydown?
The builder for the Argenta condo project.
Is a 2/1 Buydown Right for You?
A 2/1 buydown can be an excellent option for homebuyers who want lower initial payments, plan to refinance within a few years, or anticipate a higher income in the near future. However, it’s essential to evaluate your long-term financial goals to determine if this strategy aligns with your home-buying plan. Argenta has teamed with Group Mortgage and you are encouraged to reach out to discuss this option with their team. Click here LoanFly PQ
Learn More About Buying at Argenta
Argenta offers a unique opportunity to own a modern, stylish condo in the heart of Aurora. With 32 units available, including studio, 1-bedroom, and 2-bedroom condos, these residences are designed for convenience, comfort, and long-term value.
Interested in learning more about financing options, available units, or securing a 2/1 buydown for your purchase? Contact us today and take the first step toward owning a brand-new Argenta condo!
Group Mortgage, LLC 2803 E Harmony Road Fort Collins, CO 80528. Company/Branch NMLS 1170166. Corporate Phone: [970.419.2374|tel:970.419.2374]
