Latest / Kyler Hood's DFW Market Brief
DFW Market Brief Ep 4: How 2-1 Buydowns Actually Work — Thursday, October 1, 2026
Yesterday's episode mentioned 2-1 buydowns, and it is the question Kyler keeps getting, so today is the explainer. What a 2-1 buydown actually does to your payment, what it costs, and the difference between a buydown and discount points.
The math from this episode (400,000 dollar loan, 7 percent note rate):
No buydown: about 2,669 dollars a month, principal and interest
Year 1 at 5 percent: about 2,147 dollars a month
Year 2 at 6 percent: about 2,398 dollars a month
Year 3 on: back to about 2,669 dollars a month
Total buydown cost: about 9,300 dollars, funded by whoever is offering the…
The skinny
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