Lower Your Mortgage Payment the First Year With a Lender-Paid 1-0 Buydown (2026 Addition)

CALCULATE MY YEAR 1 SAVINGS

Mortgage interest rates have been one of the biggest concerns for homebuyers over the past few years. Many buyers are ready to purchase a home but are waiting for rates to drop before making a move.

What many people don’t realize is that there are loan programs available right now that can lower your mortgage payment during the first year of homeownership.

One of the most popular options available today is the 1-0 buydown program, and the best part is that it can be lender-paid through Rocket Mortgage, meaning buyers may be able to take advantage of the program without paying extra out of pocket.

If you’re considering buying a home, this strategy can make homeownership more affordable right away.

What Is a 1-0 Buydown Mortgage?

A 1-0 buydown is a type of temporary mortgage rate reduction designed to help buyers ease into their new mortgage payment.

With this program:

• Your interest rate is reduced by 1% during the first year of the loan

• After the first 12 months, the rate returns to the standard fixed rate for the remainder of the loan

  
  

For example:

• If your loan’s permanent interest rate is 6.0%, the first year payment would be calculated at 5.0%.

• That difference can mean hundreds of dollars in savings each month during your first year in the home.

The Big Advantage: This Buydown Is Lender Paid

One of the best features of this program is that Rocket Mortgage covers the cost of the buydown.

In many cases, mortgage buydowns are paid for by the buyer or seller. With this offer, the lender pays the cost, which means you would receive the benefit of a lower payment without paying extra for it at closing.

This creates a unique opportunity for buyers to reduce their payment during the most financially demanding part of homeownership — the first year.

Restrictions may apply and loan eligibility will vary, but for many buyers this can be a significant advantage.

Why a Lower Mortgage Payment the First Year Matters

The first year after buying a home often comes with additional expenses such as:

• Moving costs

• Furniture and appliances

• Home improvements

• Landscaping or repairs

  
  

A 1% lower interest rate during the first year can provide valuable breathing room while you settle into your new home.

Instead of stretching your budget right away, the lower payment allows you to adjust to homeownership more comfortably.

What Happens After the First Year?

After the initial 12 months, the loan simply returns to the standard fixed interest rate that was locked when the mortgage was originated.

Nothing else changes about the loan structure.

Your loan remains a traditional fixed-rate mortgage, meaning your rate will not increase beyond the agreed-upon rate for the rest of the term.

Who Is This Program Best For?

A lender-paid 1-0 buydown can be especially helpful for:

• First-time homebuyers

• Buyers adjusting to a higher purchase price

• Clients relocating or purchasing in competitive markets

• Anyone wanting a lower initial mortgage payment

  
  

Because the program lowers the payment in the first year, it can help buyers comfortably transition into homeownership.

Getting Pre-Approved Is the First Step

If you’re thinking about buying a home, the best first step is to get pre-approved for a mortgage.

A pre-approval helps determine:

• Your home buying budget

• Available loan programs

• Whether a lender-paid 1-0 buydown may work for your situation

  
  

Once you’re pre-approved, you can start shopping for homes with confidence and know exactly what your monthly payment could look like. CLICK HERE for more info on the pre-approval process.

Talk With a Local Loan Expert

Email or call me, and I can run a quick 1-0 Buydown scenario specific to your target home price to show you what it would look like.

Todd Davidson Executive Loan Officer – Rocket Mortgage NMLS# #2003696

📞 Direct: (971) 275-2465 📧 ToddDavidson@RocketMortgage.com

Whether you’re buying your first home, moving up, or exploring ways to make today’s mortgage rates more manageable, we can review your options and find the best solution for your situation.

Start Your Homebuying Journey Today

Homeownership is still one of the best long-term investments you can make. Programs like the lender-paid 1-0 buydown can make it easier to get started while keeping your first year’s payments more affordable. To see your mortgage payment and potential savings enter info below:

Ready to take the first step? If you’re ready to explore your options or want to get pre-approved, reach out today. I’m here to help you navigate the Oregon market with confidence.

CLICK HERE  for my Step-by-Step Guide to Buying a Home in Oregon

Todd Davidson Executive Loan Officer – Rocket Mortgage Direct: (971) 275-2465 | Email: ToddDavidson@RocketMortgage.com NMLS# 2003696 | www.nmlsconsumeraccess.org

Disclosures: Offer valid only on retail loans with conforming loan limits and cannot be combined with any other discounts. Interest rate is reduced by 1% for the first year of the loan, after which the rate returns to the original fixed rate for the remainder of the loan term. Rocket Mortgage reserves the right to cancel or modify this offer at any time. This is not a commitment to lend. Additional restrictions and conditions apply.

Rocket Mortgage, LLC; NMLS #3030. www.nmlsconsumeraccess.org. Equal Housing Lender. Licensed in 50 states. For licensing information, go to RocketMortgage.com/legal/disclosures-licenses