Schedule a time with a Loan Officer
Apply Now

Mortgage Lenders in Raleigh NC

  • Buy A Home
  • Refinance
  • Learning Center
  • About
  • Contact
(919) 238-4934
CALL US TODAY! (919) 238-4934
  • Buy a Home
  • Refinance
  • Learning Center
  • About
  • Contact
  • Buy a Home
  • Refinance
  • Learning Center
  • About
  • Contact

Raleigh Mortgage Broker Logan Martini Shares How Raleigh Homebuyers and Raleigh Sellers Benefit From a 1-0 Buydown | Martini Mortgage Group, a Raleigh mortgage lender

October 16, 2022 by Kevin Martini

What is a Buydown?

A buydown (a.k.a. ‘Seller-Paid Buydown‘ or a ‘Temporary Buydown’)  is where where the seller pays a fee at the closing to reduce the interest rate on the homebuyer’s mortgage temporarily. This results in temporarily lowering the buyer’s monthly payment and making the home more affordable for a homebuyer today.

What is a 1-0 Buydown?

A 1-0 Buydown is when a seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) to reduce the interest rate on the homebuyer’s mortgage by 1% in year 1.

How does a Temporary Buydown work?

At time of closing, the seller will fund a custodial escrow account on behalf of the new homeowner. The borrower will have a reduced monthly payment, and the difference in interest rates comes out of the custodial escrow account.

If at time of sale or refinance, if there is a remaining balance in the custodial escrow account, the unused balance will be credited to the borrower.

Advantages of a Buydown for a Raleigh Homebuyer

A buydown reduces the buyer’s mortgage interest rate and monthly payment during the first few years(s) of homeownership, making the home more affordable for homebuyers. Buydowns have a much greater impact on the homebuyer’s monthly payment than reducing the list price of the home.

Advantages of a Buydown for a Raleigh Home Seller

A buydown could be a great negotiating tool because a greater percentage of homes listed for sale in today’s market are seeing price reductions. Not only does a buydown makes a home more affordable to a wider range of buyers who may have otherwise been priced out of the market, it also tends to cost less than a price reduction.

A seller offering to pay for a buydown could give provide a competitive advantage vs. other homes listed for sale in today’s changing market. This is because rising Raleigh interest rates could create  significantly an affordability challenge for many potential buyers. 

As an added benefit, a buydown could also save a seller the aggravation and financial loss of having to significantly reduce your list price in order to compete with other homes that may be listed for a lower price.

In today’s market both seller and buyers need to evaluate the best approach.

Logan Martini | Raleigh Mortgage Broker & Certified Mortgage Advisor
real estate podcast on seller paid buydowns by raleigh mortgage lender kevin martini

A 1-0 Buydown Scenario

For illustration ONLY: if homebuyer purchased $400,000 home and put 20% down with a 30-year fixed rate of 7%, they would have a P&I payment of $2,129. However, if the homebuyer requested (or the seller offered) at list price (e.g. $400,000) the Martini Mortgage Group 1-0 Buydown Program, the rate would be reduced by 1% for the first year (i.e. 6% in this example for illustration ONLY). The homebuyer would save $2,520 of P&I during the first year and that is a savings of $210 a month to the homebuyer.

Is a 1-0 Buydown The ONLY Buydown Option?

No, the Martini Mortgage Group, a Raleigh mortgage lender, Buydown Program has three options (i.e. 1-0 Buydown, 2-1 Buydown & 3-2-1 Buydown). Let’s connect so you can get trusted advice from a local expert that some call the best mortgage guys in Raleigh, NC. The Martini Mortgage Group offers local home loan programs such as Conventional Loans, FHA Loans, Jumbo Loans and USDA Loans to name a few.

To contact loan officer Logan Martini for a financial review simply call (919)238-4934 or stop by the office since the Martini Mortgage Group is local and is located in downtown Raleigh, NC at 507 N Blount St, Raleigh, NC 27604.

Filed Under: 1-0 Buydown, 1-0 Seller Paid Buydown, Affordability, Agency Loan, buydown, Buydowns, Conforming Loan, Conventional Loan, Fannie Mae, FHA Home Loan, Freddie Mac, Home Loans, Logan Martini, Mortgage, Mortgage Rates, Raleigh, Real Estate, Refinance, VA Home Loan Tagged With: 1-0 Buydown, 1-0 Seller0Paid Buydown, Buydown, Buydowns, Buying a Home in North Carolina, Buying a Home in Raleigh, Logan Martini, Mortgage Tips, North Carolina, Raleigh, Raleigh Mortgage Broker, Raleigh Mortgage Lender, Real Estate, Seller-Paid Buydown

How Buyers and Sellers benefit from buydowns in Raleigh

October 2, 2022 by Kevin Martini

A unique way that more sellers can meet more homebuyers and more homebuyers can become homeowners is with Seller-Paid Buydowns.

Kevin Martini, Certified Mortgage Advisor with Martini Mortgage Group

WHAT IS A ‘SELLER-PAID BUYDOWN’?

A ‘Seller-Paid Buydown’ is where where the seller pays a fee at the closing to reduce the interest rate on the buyer’s mortgage temporarily. This results in temporarily lowering the buyer’s monthly payment and making the home more affordable for a homebuyer today.

WHAT TYPE OF ‘SELLER-PAID BUYDOWN’ ARE AVAILABLE TODAY WITH THE MARTINI MORTGAGE GROUP?

There are three ‘Seller-Paid Buydown’ strategies offered by the Martini Mortgage Group:

1-0 Buydown…seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) to reduce the interest rate on the homebuyer’s mortgage by 1% in year 1.

2-1 Buydown…seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) reduce the interest rate on the buyer’s mortgage by 2% in year 1 and 1% in year 2.

3-2-1 Buydown…seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) reduce the interest rate on the buyer’s mortgage by 3% in year 1, 2% in year 2 and 1% in year 3.

BENEFIT OF BUYDOWN FOR A HOMEBUYER?

A buydown reduces the buyer’s interest rate and monthly payment during the first few year(s) of homeownership, making the home more affordable for homebuyers. It has a much greater impact on the homebuyer’s monthly payment than reducing the list price of the home.

BENEFIT OF BUYDOWN FOR A HOME SELLER?

A buydown could be a great negotiating tool because a greater percentage of homes listed for sale in today’s market are seeing price reductions. Not only does a buydown makes a home more affordable to a wider range of buyers who may have otherwise been priced out of the market, it also tends to cost less than a price reduction.

A seller offering to pay for a buydown could give provide a competitive advantage vs. other homes listed for sale in today’s changing market. This is because interest rates have gone up significantly this year, creating an affordability crisis for many potential buyers. As an added benefit, a buydown could also save a seller the aggravation and financial loss of having to significantly reduce your list price in order to compete with other homes that may be listed for a lower price.

In today’s market both seller and buyers need to evaluate the best approach. The best approach for a homebuyer may be with a buydown versus a price reduction and for a seller, the best approach may be to offer a buydown instead of a price reduction.

Logan Martini, Senior Mortgage Strategist with Martini Mortgage Group

The following examples of Seller-Paid 1-1 Buydown, Seller-Paid 2-1 Buydown, 3-2-1 Seller-Paid Buydown are for illustration ONLY…assuming a sales price of $400,000 with a Borrower putting 20% down and securing a 30-year fixed mortgage with a rate of 7%. Comparing the sales price to a $25,000 price reduction to a Seller-Paid Buydown.

1-0 Buydown a.k.a. ‘Seller-Paid 1-0 Buydown’

1 1 buydown by raleigh mortgage lender kevin martini with martini mortgage group 507 n blount st raeligh nc 27604 1
seller paid 2 1 buydown a.k.a. 2 1 buydown

2-1 Buydown a.k.a. ‘Seller-Paid 2-1 Buydown’

2 1 buydown by raleigh mortgage lender kevin martini with martini mortgage group 507 n blount st raeligh nc 27604
seller paid 3 2 1 buydown a.k.a. 3 2 1 buydown

3-2-1 Buydown a.k.a. ‘Seller-Paid 3-2-1 Buydown’

3 2 1 buydown by raleigh mortgage lender kevin martini with martini mortgage group 507 n blount st raeligh nc 27604
real estate podcast on seller paid buydowns by raleigh mortgage lender kevin martini
Is a Seller-Paid Buydown the proper strategy for you?

I don’t know however I do know that there is never a substitute for researching your options with a Martini at the Martini Mortgage Group. For a FREE and confidential conversation, simply dial (919) 238-4934.

logan martini raleigh mortgage lender with martini mortgage group 2

Logan Martini

NMLS 1591485 | Senior Mortgage Strategist 

Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | 507 N Blount St, Raleigh, NC 27604

[email protected]

Kevin Martini

NMLS 143962 | Certified Mortgage Advisor

Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | 507 N Blount St, Raleigh, NC 27604

[email protected]

kevin martini best raleigh mortgage broker

Filed Under: 1-1 Buydown, 1-1 Seller-Paid Buydown, 2-1 Buydown, 2-1 Seller-Paid Buydown, 3-2-1 Buydown, 3-2-1 Seller Paid Buydown, Agency Loan, Buy a Home, buydown, Buydowns, Conforming Loan, Fannie Mae, FHA Home Loan, Freddie Mac, Home Loans, Kevin Martini, Logan Martini, Mortgage, Mortgage Rates, Raleigh, Real Estate, Things to Consider when Buying a Home, Uncategorized, VA Home Loan Tagged With: 1-1 Buydown, 1-1 Seller-Paid Buydown, 2-1 Buydown, 2-1 Seller-Paid Buydown, 3-2-1 Buydown, 3-2-1 Seller Paid Buydown, Buydowns, Buying a Home in North Carolina, Buying a Home in Raleigh, Gold Star Mortgage, Goldstar Mortgage, Kevin Martini, Logan Martini, Martini Mortgage Group, Mortgage Tips, Raleigh Mortgage Broker, Raleigh Mortgage Company, Raleigh Mortgage Lender, Raleigh Mortgage Rates, Seller-Paid Buydowns

  • « Previous Page
  • 1
  • 2

    Contact Form


    to Terms of Use | Privacy Policy | TCPA Consent * By submitting you agree to our Privacy Policy, Online Policy, TCPA Disclosure & Consent for SMS/Texting. Msg/data rates may apply. This consent applies even if you are on a corporate, state or national Do Not Call list. By checking this box, you expressly consent that Martini Mortgage Group may call, text and email you about your inquiry. This may involve the use of automated means and prerecorded/artificial voices. This consent is not a condition to purchase any products or services. You are providing express written consent under the Telephone Consumer Protection Act (TCPA) to be contacted by Martini Mortgage Group. You may revoke this consent at any time by replying 'STOP' to any text message you receive or by contacting us at +1(919) 238-4934.

    Quick Links
    • Buy A Home
    • Refinance
    • Learning Center
    • Contact
    • About
    • Blog
    • Apply Now
    Loan Options
    • Conventional
    • FHA
    • VA
    • Jumbo
    • Reverse Mortgages
    • Cash-out Refinance
    • First Time Home Buyers
    • Bank Statement Loans
    • USDA
    • DSCR
    Resources
    • Home Purchase Qualifier
    • Refinance Analysis
    • Search Homes For Sale
    • Home Value Estimate
    • Mortgage Calculator
    • Mortgage Process
    • FAQs
    • Living in Raleigh
    • Podcast
    Contact
    • Martini Mortgage Group
      507 N Blount St
      Raleigh, NC 27604
    • Find us on Google

    • Phone: (919) 238-4934
    • NMLS# 143962
    Martini Mortgage Group at Gold Star Mortgage Financial Group

    Copyright © Martini Mortgage Group | All Rights Reserved.
    Terms of Use | Privacy Policy

    FacebookTwitterLinkedinYoutubeInstagram
    Equal Housing Lender

    Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | For licensing information go to: www.nmlsConsumerAccess.org and/or www.GoldStarFinancial.com Please review our Disclosures & Licensing information | Gold Star Mortgage Financial Group Corporation has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency. Equal Housing Lender. For further information about Gold Star Mortgage Financial Group, Corporation, please visit our website at www.GoldStarFinancial.com. Receipt of application does not represent an approval for financing or interest rate guarantee. Applicant subject to credit, acceptable appraisal, title, and underwriting approval. Not all applicants will be approved. Other terms and conditions apply. Contact Gold Star Mortgage Financial Group, Corporation for more information and up-to-date rates.

      Contact Form


      to Terms of Use | Privacy Policy | TCPA Consent * By submitting you agree to our Privacy Policy, Online Policy, TCPA Disclosure & Consent for SMS/Texting. Msg/data rates may apply. This consent applies even if you are on a corporate, state or national Do Not Call list. By checking this box, you expressly consent that Martini Mortgage Group may call, text and email you about your inquiry. This may involve the use of automated means and prerecorded/artificial voices. This consent is not a condition to purchase any products or services. You are providing express written consent under the Telephone Consumer Protection Act (TCPA) to be contacted by Martini Mortgage Group. You may revoke this consent at any time by replying 'STOP' to any text message you receive or by contacting us at +1(919) 238-4934.

      Copyright © 2025 · Martini Mortgage Group on Genesis Framework · WordPress · Log in