The interest rate is the charge for borrowing money, and it decides how much you pay each month for your mortgage. An interest rate buydown is a plan where the borrower pays an upfront fee to the lender in exchange for a lower interest rate on the mortgage loan, making the initial monthly payments lower. This can be a temporary buydown, which helps with payments for the first few years, or a permanent buydown, which lowers the interest rate for the whole loan. First-time homebuyers might benefit from lower initial monthly payments and better chances of getting a mortgage.
But it’s important to think about upfront costs and get advice from professionals before choosing an interest rate buydown.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
