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$105,350
4
2
Gastonia, NC
beds
baths

$185,000
3
2
China Grove, NC
beds
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$270,000
5
3
Mooresville, NC
beds
baths

$17,900
0
0
Salisbury, NC
beds
baths

What You Must Know About - Interest Rate Buydowns
Interest Rate Buydowns
An interest-rate buydown is a tool to help you qualify for a larger loan and purchase a higher-priced house than you could under normal circumstances. A buydown allows you to pay extra (tax-deductible) points up front in return for a lower interest rate for the first few years. Often, people relocating for employment obtain buydowns because employers sometimes pay the extra points as part of a relocation package.
While the most common way of obtaining a buydown is by paying extra points up front, many mortgage companies now increase the note rate to cover the cost in later years.
The most common is the 2-1 buydown, which can cost 3 additional points above current ma…
