What is a Mortgage Rate Buy-Down?

Interest rates are always a hot topic for anyone looking to buy a house - many use it as a gauge as to whether or not it's a good time to be in the market. However, there is a way to buy the interest rate down. Here's what that means:

A mortgage buydown is a way to lower your interest rate by paying discount points at closing. Discount points are a one-time, upfront fee.
Each point costs 1% of the mortgage. For example, one point on a $200,000 mortgage would cost $2,000.
Each point lowers the rate by 0.25%. So, one point would lower a mortgage rate from 6% to 5.75% for the life of the loan.

So if you've got some extra savings and can afford it, buying mortgage points may be a really smart investment!

One last tip - talking to a mortgage lender is absolutely free! If you're looking for some more information, call us - I'll help where I can and will connect you with others who may be able to help you start your home buying journey!