What is a rate buydown on a new home?
A buydown is money paid at closing to lower your interest rate. On a new home, the builder often pays it.
By Nick GutheryOwner & CEOUpdated Florida & Georgia
Some buydowns lower the rate for the whole loan. Others lower it for the first year or two and then it goes up. Ask which kind you are getting, and what your payment will be after it ends.
A builder buydown usually comes through the builder's lender. You are free to use any lender, so compare what each one offers.