Future-Proof Your Mortgage: The Perks of Opting for Permanent Rate Buydowns

By Desi Williams

I'm a Real Estate Broker. I'm good at what I do, and I'll be there with you every step of the way, because I don't know any other way. I'm more than just a buying and selling agent, I'm somebody who wants to help you create your next paradise with everything that means – to you.

Are you familiar with 2-1 buydowns, 3-2-1 buydowns, or permanent buydowns? While the 2-1 buydown has gotten a lot of attention lately, we believe there’s a more advantageous option - the permanent rate buydown.

Unlike its temporary counterpart, a permanent rate buydown ensures a lowered interest rate for the entire duration of your loan. This eliminates the stress of anticipating fluctuating rates every two years, offering a more secure financial approach.

But why is the permanent rate buydown gaining popularity? Let’s explore a couple of reasons:

1. Long-term stability. By choosing a permanent rate buydown, you secure a reduced interest rate for the life of your loan. No more worrying about market fluctuations affecting your mortgage rates in the future.

2. Affordability. Surprisingly, opting for a permanent rate buydown is not only more stable but also more affordable. It comes at a lower cost than the 2-1 buydown, making it an attractive choice for many. Sellers, in particular, find it appealing as it only costs them around 1% more than covering closing costs, as opposed to the higher 2.5% to 3% associated with other options.

If you’re currently in the market, whether buying or selling, it’s worth considering the benefits of a permanent rate buydown. Feel free to call or email us with any questions or if you need guidance on the home buying and selling process. We’re here to help you navigate the real estate landscape with confidence.