When is it beneficial to use a 2-1 buydown strategy in home buying?

A two-one buydown lowers initial mortgage payments by reducing the interest rate for the first two years, which benefits buyers expecting to refinance within twelve to twenty four months. Using seller credits for this buydown improves cash flow early on without requiring deep list-price cuts. This strategy helps buyers manage upfront costs and transition smoothly into standard payments after refinancing when rates potentially decrease.