Ready for some real talk about getting a mortgage this fall/winter?
As rates inch higher, more homeowners are buying down their interest rates.
Curious about what that means and if it’s right for you?
Here’s the rundown on mortgage rate buydowns:
▪️ A mortgage buydown is a way to lower your interest rate by paying discount points at closing. Discount points are a one-time, upfront fee.
▪️ Each point costs 1 percent of the mortgage. For example, one point on a $200,000 mortgage would cost $2,000.
▪️ Each point lowers the rate by 0.25 percent. So, one point would lower a mortgage rate from 6 percent to 5.75 percent for the life of the loan.
If you've got some extra savings and can afford it, buying mortgage points may be a smart investment.
Have more questions about buying a home or taking out a mortgage? Contact Charles Khouri & Team - We're here to help any way we can.
BUYER FAQ - What is a mortgage rate buy down?
Posted in Financing