Stone Bridge Mortgage Group_First Time Home Buyers Guide-Earnest Money

Buying down your mortgage rate means paying an extra fee at closing to get a lower interest rate and monthly payment on your loan. This can be a good option for some homebuyers, but it also has some drawbacks. Here are some of the pros and cons of buying down your mortgage rate:


  • You can save money on your monthly payments and total interest over the life of the loan
  • You may be able to qualify for a larger loan amount or a more expensive home
  • You may be able to deduct the cost of the discount points from your taxes (consult a tax professional for more information)


  • You have to pay more money upfront, which can deplete your savings or reduce your down payment
  • You may not break even on your investment if you sell or refinance your home before the end of the buydown period
  • Not all lenders offer buydowns, and the terms and fees may vary

Buying down your mortgage rate is a personal decision that depends on your financial situation, your goals, and the market conditions. You should compare different loan options and scenarios to see which one works best for you.


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