Interest Rate Buydowns

Mortgage and Lending with D A Griffin Financial.LLC NMLS 6380

Interest Rate Buydowns 


Interest rate buydowns for home loans are coming back into focus. 


What are the benefits of an interest rate buydown and who is the best candidate?

In general the best candidate for an interest rate buydown would be someone who is expecting to have a greater income in a couple of years. A buydown allows the home buyer to ease into a higher rate (payment) in year #2 and #3. 

Another candidate would be someone who perhaps sees the home as a short term investment if he/she moves or transfers often. 


In light of rising home prices and interest rates, a buydown can help those with budget concerns initially.  Think about someone who is paying off student loans or an auto payment which would be paid off in 2 years. 

Each home loan situation is different so there are different reasons one may select a buydown of a long term interest rate. What is important to know is that it is something lenders are offering again and it is not for everyone, and it comes at an additional cost, and not all lenders are offering it. 

Interest rate buydowns are just another tool in the toolbox when I listen to home buyers and their goals.




Comments (5)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Dora and I am talking about buy down rates to sellers and buyers to get the deals done.  Great blog, can I re blog it down the road?

Aug 23, 2022 08:54 AM
Dora Griffin

Thanks, Will.  Absolutely!  


Have a great day.

Aug 24, 2022 07:41 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em:

Happy Taco Tuesday! Enjoyed your Blog this morning.  Make it a great day. 

Aug 23, 2022 11:05 AM
Dora Griffin

Thanks for that!  

Happy hump day to  you!

Aug 24, 2022 07:42 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Aug 24, 2022 01:36 AM
Dora Griffin

Thanks Richard,  I appreciate your feedback. Have a wonderful day. 

Aug 24, 2022 07:42 AM
Roy Kelley
Retired - Gaithersburg, MD

This is good information to share.

Thank you very much for following my blog. Your comments are always weldome.

Aug 31, 2022 05:23 AM
Dora Griffin
D A Griffin Financial.LLC - Fort Thomas, KY
NMLS 6380

You are welcome!  Have a great day!

Aug 31, 2022 07:25 AM