Down - Rate Buy

: Buyers planning to keep their home and mortgage for a long period (usually 5–7+ years) to reach the "break-even point" where monthly savings exceed the upfront cost. 2. Temporary Buydowns

: Funds are held in an escrow account and used to subsidize monthly payments. These are almost always paid for by the seller or builder as an incentive. Common Structures : rate buy down

: The borrower (or sometimes the seller) pays "points" to the lender at closing. : Buyers planning to keep their home and

: Rate is 3% lower in Year 1, 2% lower in Year 2, and 1% lower in Year 3. 2% lower in Year 2

This option reduces the interest rate for the entire duration of the loan.