How To Buy Down A Mortgage Rate » «PREMIUM»

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

: One point generally lowers your interest rate by 0.25% . how to buy down a mortgage rate

: Determine how long it will take for your monthly savings to cover the upfront cost. Formula : To buy down a mortgage rate, you pay

: You might move or refinance before the break-even point, as you will lose the upfront money spent on points. To buy down a mortgage rate