The 2/1 Buydown Time Bomb
In 2022 and 2023, the 2/1 buydown was all the rage. Buyers stretched into homes they couldn’t quite afford yet because the first two years of payments looked “manageable.”
Fast-forward to today, and those payments are jumping—hard. I talked to a family recently who went from paying $2,500/month to just over $3,600. That extra $1100+ wasn’t in the budget (and we KNOW taxes and insurance likely went up as well). They’re not alone.
Here’s why this matters for you as an agent (or investor):
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Payment shock is real. Many owners can’t sustain the jump. That creates conversations—and listings.
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Refi isn’t the rescue plan. Rates didn’t drop like people hoped. Some can’t qualify, others don’t have enough equity.
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Equity cushions are shrinking. Homeowners would rather sell while they still have chips on the table than risk losing them.
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Investors get to be problem-solvers. You can offer terms, cash, or just speed—the very thing these sellers need.
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The timeline is predictable. We know when those buydowns were written. We know when they expire. Translation: a ready-made lead list.
The takeaway? The 2/1 buydown was a Band-Aid. That Band-Aid is now ripping off, and it’s exposing financial wounds that sellers can’t ignore.
A simple opener:
“A lot of 2/1 buydowns from 2023 are about to expire (or recently did)—have you thought about how that affects your payment (or your next move)?”
It’s a smart, timely talking point that can uncover sellers who need your help right now.