A 2-1 buy-down 30 year fixed is a mortgage loan option in which the lender, seller, or builder temporarily reduces the home buyer’s interest rate. The lender, seller, or builder pays a lump sum upfront, ensuring temporarily lower interest rate during the buy-down period. This option reduces the interest rate by 2% the first year of the mortgage, by 1% the second year of the mortgage, and returns the original rate at which the loan was locked the third year. The 2-1 Buy-Down 30 Year Fixed is the maximum buy-down Cali Mortgage offers. Here’s link from Rocket Mortgage that explains the buy-down an bit further

Trigger Terms: Certain terms or information automatically require additional terms and/or disclaimers. While AFN’s legal department will ensure all information is provided, the marketing department should be aware of and anticipate these requirements when creating marketing materials. If advertisements states: (1.) Number of payments or period of repayment (e.g., 30-years); or (2.) The amount of any monthly payment; or (3.) The amount of any finance charge. THEN advertisement MUST include: (1.) Down payment required (if applicable); (2.) Frequency AND length of payments (e.g., “monthly payments” and “30-year fixed); (3.) Amount of payment; (4.) Rate and APR (directly next to each other); (5.) Statement that, “Payment does not include property taxes or insurance, and if applicable, your payment obligation will be greater.” IF advertisement features the monthly payment, then ALL additional terms must be disclosed directly next to the payment amount. Further, all additional terms must be disclosed with equal prominence (same font-type) as payment.