5.25 Interest Rates for a Limited Time

You read the title of this article correctly; there is a specialized loan product that offers a 2% discount on a 30-year fixed mortgage interest rate for the first year (so, lowered to about 5.25% at the time we posted this article). This offer is called a “2-1 Buydown,” offering a 2% interest rate discount the first year, and a 1% discount the second year of the loan. This option isn’t free, but sellers may be more agreeable to covering the cost as we enter a slower, winter market. In the third year, your rate will return to the original rate at the time you purchased. In other words, this option is not a long-term savings solution, but can be really helpful if you want to tackle some initial home projects. Reach out to us to get connected with a lender who can help you with this option. Posted by Amanda Verbrick on October 26th, 2026 Subscribe for Blog Updates Tags mortgage (2) buying tips (2) Interest rates (1)