💡 Real Estate Tip: Why a $10K Rate Buydown Beats a $10K Price Drop
When buying a home in Johnston or the Des Moines metro area, it’s easy to focus on negotiating the purchase price. But here’s the truth: a $10K rate buydown can often save you more on your monthly payment than a $10K price reduction.
Example:
Price Drop: $400K → $390K at 6.5% = ~$66/month savings
Rate Buydown: $400K with rate lowered to 5.875% = ~$163/month savings
That’s more than double the monthly savings!
Why? Most buyers shop based on monthly payment, not just the home’s sticker price. Lowering the interest rate gives you more buying power or extra room in your budget.
Thinking about buying or selling a home in Johnston or the Des Moines metro area? Let’s talk about how a rate buydown could make your next move more affordable.
📞 515-314-4777
