01/14/2026
Should you buy down your interest rate? Let’s make it make sense 👇🏽🏡
My answer is always: maybe, but only if the math makes sense.
Here’s the simple way I explain it:
Buying down your rate means paying money upfront to get a lower rate and monthly payment
⭐️ But the big question is…
How long will it take to get that money BACK?
This is what we call the break-even point.
⭐️ Here’s how we calculate it:
Cost of buydown ÷ monthly savings = months to break even
Example:
If the buydown cost is $3,000 and it saves you $50/month…
$3,000 ÷ $50 = 60 months
That’s 5 years to recoup.
⭐️ So now the real question becomes:
Will you keep the home/loan longer than 5 years?
If yes, great — it may be worth it.
If no, it might not make sense to spend that money upfront.
⭐️ Here’s the BIG difference:
If you have seller credits… buying down your rate makes sense all day long, because you’re using their money to lower your payment.
⭐️ Another important thing to know…
When you see super low rates advertised online, always do your homework.
A lot of times those rates include large rate buydowns, high upfront fees, or assume perfect scenarios that don’t apply to most buyers.
The rate might look great, but the cost to get it matters.
That’s why comparing rates without comparing fees is only half the story.
My job is to help you see the full picture, not just the headline rate 🌈
