Jordan Nitto - Global South Florida Realtor

What is a Mortgage Rate Buydown? 🧐

A mortgage rate buydown is a strategy where a borrower pays a one-time, upfront fee in exchange for a lower interest rate on their mortgage loan. This fee, called discount points, reduces the interest rate for the life of the loan. Each discount point typically costs 1% of the mortgage amount and reduces the interest rate by 0.25%. The goal of a mortgage rate buydown is to lower monthly mortgage payments and potentially save the borrower money over the long term. ✅

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