Found 1 blog entry tagged as buy down mortgage rate.

When it comes to purchasing a home, securing a favorable interest rate is a critical component of your financial planning. One effective strategy that can help you achieve the lowest possible interest rate is "buying down" the interest rate on your loan. In this blog, we’ll examine what an interest rate “buy down” is, how it works, and how it can help you achieve your financial goals.

What is "Buying Down" an Interest Rate?

"Buying down" an interest rate, also known as a mortgage rate buydown, involves paying an upfront fee to reduce the interest rate on your mortgage. This fee is commonly referred to as "discount points." Each point typically costs 1% of the total loan amount and can lower your interest rate by a fixed amount, often 0.25%. For…

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