Tag Archive for: rate buydowns

How Much Does It Cost To Buy Down Your Interest Rate?

Are you curious about how to save money on your home loan? Have you heard about the possibility of buying down your interest rate but aren't sure what it entails or how much it costs? In the simplest terms, a mortgage rate buydown involves paying an upfront fee to reduce your mortgage interest rate and lower your monthly payments.Read More

Save Money With Seller-Paid Rate Buydowns Instead of Price Reductions

A “rate buydown” gives borrowers lower interest rates in exchange for higher fees or “discount points” paid up front (when they close). We discourage rate buydowns in general because borrowers rarely hold onto their mortgages long enough to make the extra points or fees worth the added expense. But – if sellers are willing to pay for the rate buydowns, my opinion changes quickly.Read More