For many Mountain Home Buyers, the hardest part of buying a home is making the numbers work. You budget, you save, and the finish line still feels far away. But your salary is only half the
The Time is Right for This Old Tool
Dated: August 11 2026
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It's Time Again for A Buydown
With interest rates remaining stubbornly high you don't have to wait to buy your dream mountain home. With potential higher rates coming waiting makes no sense either. A 3‑2‑1 buydown is a temporary interest‑rate reduction that makes the first three years of homeownership more affordable. On a $1,000,000 loan at 6.5%, your payment starts at 3.5% in Year 1, then steps up gradually until reaching the full rate in Year 4.
This saves you $24,336 in Year 1, $16,236 in Year 2, and $8,364 in Year 3, for a total of $48,936 in reduced payments.
It’s a powerful negotiation tool: instead of asking for a price reduction, you can ask the seller to fund the buydown, giving you meaningful monthly relief without reducing the seller’s net proceeds as dramatically.
Interest Rates Under a 3‑2‑1 Buydown
Year 1: 3.5%
Year 2: 4.5%
Year 3: 5.5%
Year 4+: 6.5% (full note rate)
Here's the savings at a $1 million loan amount
Tom Driemeyer
About Tom DriemeyerFor more than 45 years, Tom Driemeyer has called Summit County home — skiing its peaks, hiking its trails, raising a family, and helping people find their place in this extrao....
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