Joel Boss1 Look Real Estate
North Metro Atlanta · Buying

What is a mortgage rate buydown?

A mortgage rate buydown lowers a buyer's interest rate, either temporarily for the first year or two of the loan or permanently for its full term, by paying an upfront cost at closing to the lender in exchange for that lower rate. A seller can sometimes fund the buydown as a negotiated concession instead of a straight price reduction. Joel Boss explains when a buydown makes sense against a straightforward price negotiation for a specific buyer's situation.

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