05/30/2025
Learn with me current Rate Buy Downs from Max!
“Let’s say your client buys a new home with a $700K loan and pays $6-7K to buy the rate down. A few months later, they sell their old home and put $300K toward the loan, bringing the balance down to $400K. The monthly savings from the buydown? Only about $70. It would take 8–9 years to break even—and if they refinance or sell before then, some of that money is lost. Another point to consider…what if they had taken that $6-7K and invested it? They’d be making money on their money. So the break even for the buy down can be even longer.”