Mortgage Hack – Rate Buydowns

Published 3 weeks ago

A temporary rate buydown is often confused with paying points for a lower rate. A buydown allows a borrower to obtain a lower interest rate, for a period of time, by prepaying some of the interest on the loan. What's really great, is the prepaid interest can be paid by the seller!

Here's a simple explanation of how the Temporary Rate Buydown works, and the potential savings.