What is a mortgage rate buydown — and how can it help reduce not just your monthly payments, but the overall cost of your mortgage?
When you complete a mortgage rate buydown, you will buy “points” at closing that will reduce your interest rate. Mortgage buydowns can be an effective tool to lower your monthly mortgage payments when interest rates are high. You’ll want to make sure you plan to stay in your home long enough — without refinancing — that you will recoup the cost of points you paid for upfront.
