Mortgage Rates
What is a rate buydown?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A rate buydown uses an upfront payment to lower your interest rate, either permanently (discount points) or temporarily (a 2-1 or 3-2-1 buydown that steps up over the first years). The seller or builder often funds temporary buydowns.
It reduces your payment, with permanent buydowns helping long-term and temporary ones easing the early years. We'll show which buydown saves you the most for how long you'll stay.
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