First-time homebuyer Ryan Katherine, 30 years old, bought a Salt Lake City home with her partner in 2023. After agreeing to a 2-1 buydown — where you pay a lower mortgage rate for the first two years — the couple’s initial 4.625% rate turned into their current 6.625% mortgage rate. Setting the scene on homebuying Katherine’s 2-1 buydown is an example of an increasingly popular incentive for buyers. Bankrate reports these super-low new construction rates averaged 5.27% during the third quarter of 2025, compared to 6.26% for buyers of existing homes. Typically, a seller finances a mortgage buydown for the homebuyer by putting money into an escrow account that’s applied to the monthly mortgage payments. That way, the buyer can pay less in interest for the first few years. For example, a 3-2-1 buydown reduces the interest rate by 3% the first year, 2% the second year and 1% the third year. A 2-1 buydown like Katherine’s reduces the rate by 2% the first year and 1% the second year.…