How to Save Money with Interest Rate Buydowns

The interest rate is the charge for borrowing money, and it decides how much you pay each month for your mortgage. An interest rate buydown is a plan where the borrower pays an upfront fee to the lender in exchange for a lower interest rate on the mortgage loan, making the initial monthly payments lower. This can be a temporary buydown, which helps with payments for the first few years, or a permanent buydown, which lowers the interest rate for the whole loan. First-time homebuyers might benefit from lower initial monthly payments and better chances of getting a mortgage.

But it’s important to think about upfront costs and get advice from professionals before choosing an interest rate buydown.

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Shirin Rezania Ramos | 858.345.0685 | | Compass, DRE 0203379

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What is your home worth? click here. Homes for sale in Carmel Valley click here. Shirin Rezania Ramos | 858.345.0685 | | Compass, DRE 0203379

Shirin Rezania Ramos, Realtor®