Are Interest Rate Buydowns the Solution to Housing Affordability?

Here’s how interest rate buydowns can help make homes more affordable. 

Are you sick of higher interest rates? A lot of would-be home buyers have been put off by higher rates and home prices, but there might be a solution: interest rate buydowns. Today, we’ll cover what interest rate buydowns are, how they work, and why you should use one to purchase a home.

First, interest rate buydowns are usually used by home sellers as a negotiation strategy. By offering money upfront, you can lower your interest rate for a set period of time, which can save you tons of money each month on your mortgage. Even offering a higher price to your seller might be worth it if you can secure this lower interest rate, so we highly recommend you work with your real estate agent to explore this option. 

"Rate buydowns are usually temporary, but they’re worth it."

One thing to keep in mind is that rate buydowns are temporary. While there are permanent rate buydown options, they can get a little expensive. Plus, interest rates may fall within the next few years, at which point you can simply refinance down to a lower rate. 

If you have questions about rate buydowns or how you can use them to secure a home, please call or email us. We’d love to hear from you!