Jen Lends Gulf Coast LLC

Jennifer Garcia

Loan Officer

NMLS: 2547675


Licensed in Alabama & Florida

Jennifer Garcia Loan Officer

Buying Down the Interest Rate on your Mortgage

Buying Down the Interest Rate on your Mortgage

If you want a lower monthly mortgage payment, you might consider buying down your interest rate when you get a new mortgage loan. This clever trick helps you lower your mortgage interest rate. And when your interest rate goes down, your monthly payments also go down. But there are two main types of buydowns: permanent and temporary. Each has its own pros and cons, so let's take a closer look at each option to see how they work and which one might be best for you.

Two Ways to Lower your Interest Rate

Imagine if you could lower your mortgage interest rate by paying some extra money upfront. Well, that's exactly what a buydown does. It's like making an investment that can save you a lot of money over time. There are two kinds: permanent and temporary.

Permanent Buydowns: A Long-Term Plan

Choosing a permanent buydown is like picking a buddy to stick with you through your entire loan journey. You pay a bit extra at the start to lock in a lower interest rate. This helps you save money over the long haul, especially if you plan to stay in your home for a while.


  • You get a lower, steady interest rate, which means you know exactly what you'll pay each month.
  • You save a bunch of money on interest over time.


  • You need to pay more upfront, which can be tough.
  • If you plan to move or refinance soon, this might not be the best choice.

Temporary Buydowns: A Short-Term Fix

On the other hand, a temporary buydown is more like a quick fix. It lowers your interest rate for a set amount of time, usually the first couple of years. This can be great if you need some breathing room at the start of your loan.


  • Your monthly payments are lower, especially when you might need it most.
  • It helps out during big life changes, like moving or changing jobs.


  • Once the special period is over, your interest rates and payments go back up.
  • You have to pay extra upfront, which might not be worth it for everyone.

Making the Choice: What's Right for You

Deciding between a permanent or temporary buydown depends on a few things. Think about how long you plan to stay in your home, how much you can afford upfront, and if you're okay with your payments changing later.

A mortgage rate buy-down is a tool to help you save money on your mortgage. Whether you go for the steady savings of a permanent buydown or the quick relief of a temporary one, it's all about what fits your financial needs best. So, do your research, think it over, and make the choice that's right for you!

Give us a call today to go over your options!