Interest Rate Buydown

Lower your interest rate Ease your monthly payment

Thinking of ways to make your mortgage more affordable especially in the early years? An interest rate buydown could be the smart move. At Today’s Home Mortgage, we help you make the most of this strategy, so you can start strong and stay comfortable.

Contact Us To Know More

A rate buydown is a tool that lets you pay upfront to lower your mortgage interest rate either temporarily or for the life of the loan. This results in lower monthly payments and a more manageable start to your homeownership journey. Buydowns are often used by homebuyers who want early payment relief or by sellers and builders offering incentives to close faster. Either way, it’s a flexible option that helps you step into your home with less financial pressure.

• Temporary Buydown
  Your interest rate is reduced for the first one to three years and then gradually adjusts back to the original rate.
  Great if you’re expecting your income to grow or plan to refinance later.
• Permanent Buydown
  You pay points at closing to permanently lower your rate — ideal for long-term savings if you’re staying in your home for years to come.

• Reduce monthly payments early on
• Offset high interest rates without delaying their purchase
• Take advantage of seller or builder contributions

And in many cases, sellers and homebuilders are actively offering to cover buydown costs as part of closing deals — especially on new construction homes.

• You want lower payments in the first few years
• You’re receiving seller or builder credits
• You plan to refinance within a few years
• You’re buying a home in today’s high-rate market but want more breathing room now

Whether it’s your first home, an investment property, or your next step up, we’ll help you decide if this option fits your goals.

We don’t just quote rates — we help you understand what they mean for your future. If a buydown can help you lock in better affordability, we’ll guide you through it clearly, simply, and without jargon. That’s how we’ve helped hundreds of buyers take confident steps into homeownership.

• 1. Is a rate buydown the same as paying points?
  Not always. Paying points is a permanent buydown. Temporary buydowns reduce your rate for a short time, then return to your full rate.
• 2. Who pays for the buydown?
  It can be you, the seller, or the builder depending on your contract. Many sellers offer it as an incentive in today’s market.
• 3. Does a temporary buydown increase my rate later?
  No, your rate doesn’t increase above the original. It just starts lower for a set period, then returns to the agreed rate.
• 4. Is it worth it to buy down the rate permanently?
  If you’re planning to stay in the home long enough to break even on the upfront cost, yes. We’ll help you run the numbers.
• 5. Can I combine a buydown with other loan types?
  Yes, in most cases. But buydowns may not apply to certain cash-out refis or investment property loans. We’ll walk you through your options.