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Berkshire Hathaway - Verani Realty

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Bob Ramalho November 28, 2023

Comparing Temporary and Permanent Mortgage Buydowns

When it comes to mortgages, a "buydown" generally refers to paying an extra fee upfront to reduce the interest rate over a specific period. There are typically two types: temporary buydowns and permanent buydowns. Permanent Buydown: With a permanent buydown, the borrower pays extra fees at the beginning of the loan to permanently reduce the interest rate over the entire life of the loan. This differs from a temporary buydown because the reduced rate remains constant for the entire loan term, … [Read more...]

Filed Under: Homeowner Tips, Mortgage Tips Tagged With: Mortgage, Mortgage Buydowns, Mortgage Options

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