With mortgage rates being the highest they have been in many years, you may be scared to finance a home. However, there are tools by which to combat these higher rates.

Buydowns are a way to lower the interest rate. A permanent buydown is where the rate is bought down permanently for the life of the loan. This buydown can be paid by you or the seller.

A temporary buydown is where the rate is temporarily bought down for the first few years of the loan. For example, a 2/1 buydown lowers the rate by 2% in the first year and 1% in the second year. The temporary buydown must be paid by the seller.

If you are researching mortgage rates, and want to know your options on how to get lower rates in today’s market, give us a call, we can help.