If you’re planning to buy a new construction townhome in 2025, you’ve probably heard the term “2/1 buydown.” But what does it actually mean, and how can it help you save money on your mortgage?

At Westfield Homes, we’re committed to helping buyers make smart, confident decisions. So let’s break it down.

What Is a 2/1 Buydown?

A 2/1 buydown is a type of temporary interest rate reduction offered by some homebuilders or lenders to help make your monthly mortgage payments more affordable in the first two years of your loan.

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 onward: Your rate returns to the full fixed rate for the rest of the loan term

Example: How a 2/1 Buydown Works

Let’s say you’re approved for a mortgage with a 7% fixed interest rate.

With a 2/1 buydown, your rate would look like this:

• Year 1: 5%

• Year 2: 6%

• Year 3+: 7%

That lower rate in the first two years means your monthly payment is significantly lower when you’re just starting out as a homeowner.

Why Homebuilders Offer 2/1 Buydowns

Homebuilders like Westfield Homes may offer a 2/1 buydown as a financing incentive to make homeownership more affordable. Instead of dropping the sale price, they help reduce your initial monthly payments by paying part of your mortgage interest up front.

This makes it easier for buyers to qualify, especially when interest rates are higher than usual.

What Are the Benefits of a 2/1 Buydown?

• Lower Payments at the Start
  Get some financial breathing room in your first two years of homeownership.

• Easier to Qualify
  Lower starting payments can help you meet lender debt-to-income guidelines more easily.

• More Budget Flexibility
  Use your savings for furniture, closing costs, or building your emergency fund.

• Potential to Refinance Later
  If rates drop, you may be able to refinance before the higher rate kicks in.

Is a 2/1 Buydown Right for You?

A 2/1 buydown can be a smart choice if:

• You expect your income to increase over the next few years

• You want to ease into your monthly payments

• You plan to refinance within a few years

• You’re buying a new home and want the best value upfront

At Westfield Homes, we often offer limited-time financing incentives like buydowns to make it easier for first-time buyers to step into homeownership.

Turner Ridge townhomes in Arlington, TX are now offering a 2/1 buydown, with monthly payments starting as low as $1,968/month*. This limited-time incentive is designed to make homeownership more affordable from day one. Contact us to learn how you can take advantage of this special offer. 

Ready to Learn More?

The best way to find out if a 2/1 buydown is a fit for you is to talk with a preferred lender or visit our Turner Ridge model home in Arlington. Our team can walk you through available incentives and help you compare loan options with real numbers.

Start your journey to homeownership with a clear plan and the right support.

Contact a Westfield Homes Preferred Lender →