How To Buy: Down A Mortgage Rate

To buy down a mortgage rate, you pay an upfront fee to the lender at closing in exchange for a lower interest rate, which reduces your monthly payments. This can be done by purchasing discount points or temporarily through a structured buydown plan like a 2-1 buydown. Types of Rate Buydowns

: You must usually qualify for the loan at the full original interest rate. How to Execute a Buydown how to buy down a mortgage rate

: One point generally lowers your interest rate by 0.25% . To buy down a mortgage rate, you pay

: You pay for a lower rate that lasts for the entire life of the loan. To buy down a mortgage rate

: You plan to stay in the home for a long time (typically 5+ years) and don't intend to refinance soon.