You've probably seen it in the ads: "Ask about our 2-1 buydown!" And maybe you nodded and thought you'd look it up later and then forgot. Or maybe a builder offered one and you said yes without totally understanding what you agreed to. No judgment. This episode is for you either way.

Michael breaks down mortgage buydowns from scratch — what they are, how a 2-1 buydown works, who pays for them, when they make financial sense, and when you'd be better off just negotiating the price down instead. Because a lower rate for two years sounds great until you realize what happens in year three and you haven't planned for it.

This is the kind of thing that sounds simple and isn't, and the difference between understanding it and not can cost you real money over the life of a loan. Subscribe to Home Buying Made Easy for more of the stuff they forget to explain.