What is a 2-1 buydown in real estate negotiations?

A 2-1 buydown is a mortgage rate concession where sellers or lenders subsidize lower interest rates for the first two years—two percentage points lower in year one and one point lower in year two—before rates normalize. This reduces initial monthly payments, making homes more affordable and attractive to buyers without reducing selling price. It serves as a targeted concession often used effectively in 2026 negotiations.