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Lower Your Mortgage Interest Rate with a Temporary Buydown

Lower Your Rate

Do higher mortgage interest rates have you worried that you may not be able to afford your next home? Let us help you lower your rate by up to 3%! Try our temporary buydown calculator or leave your info and a Mortgage Champion will get back to you soon. 

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What is a temporary buydown?


  • An upfront payment made to the lender in exchange for a reduced interest rate.
  • A rate reduction from 1–3% for one to three years.
  • Helps make homeownership more affordable during the early years of your home loan.
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Conventional Home Loans
How does it work?


  • Typically, the builder or seller covers the upfront payment for the temporary buydown for the homebuyer.
  • The builder or seller pays the lender the required amount at closing on behalf of the borrower.
  • Those funds go in a special account that is used to subsidize the borrower’s monthly mortgage payments.
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What happens to my rate?


  • The lender agrees to lower the interest rate for 1 to 3 years.
  • The reduced interest rate will be calculated depending on the type of buydown selected.
  • The lowered interest rate provides you with more affordable monthly mortgage payments during the buydown period.
  • At the end of the Temporary Buydown period, your rate will increase to the full interest rate on your note.

For example: A builder and borrower agree to a “2/1” Temporary Buydown. The borrower is qualified and locks in an interest rate at 6.5%. With the Temporary Buydown, the borrower’s rate would decrease by two points in year one, one point in year two, and then would be the full interest rate by year three. So in this example, the rate would decrease to 4.5% for the first year, 5.5% for the second year, and then stabilize at 6.5% from the third year onwards.


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What is the benefit?


  • Lower monthly payments during the buydown period.
  • Not waiting for the rates to come down to buy your dream home.

As you consider a temporary buydown, it is essential for you to carefully evaluate the financial implications, including the upfront costs, the length of the buydown period, and the potential long-term expenses, to determine if it aligns with your specific circumstances and financial goals. Consulting with one of Leaders Mortgage Champions can provide further guidance tailored to your specific situation.


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How to get started?
Request a Callback
Fill out the form on this page and a mortgage champion will reach out.
Explore Buydown Options
We will run the numbers for you on your temporary buydown.
Buy Your Dream Home
Enjoy lower monthly payments for the first few years of your loan.
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Request a Callback

Complete this short form and one of our Mortgage Champions will reach back out with more information about our temporary buydown options.

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If you'd like to run your own scenarios, feel free launch buydown calculator now. 

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Launch Calculator

If you'd like to run your own scenarios, feel free launch buydown calculator now. 

Launch Calculator
Get More Info