06/12/2026
When a lender says "we can buy down your rate," there are two very different things they might mean, and the difference matters a lot.
A temporary buydown (often a 2-1) lowers your rate for the first year or two, then it climbs back up to the full rate. Your payment is smaller early, bigger later. Useful if you expect your income to grow or you plan to refinance.
A permanent buydown uses discount points to lower the rate for the entire life of the loan. You pay more upfront in exchange for a lower rate forever. The math works if you stay in the house long enough to break even, usually several years.
These are different products solving different problems. Neither is automatically better.
Visit www.PrimeRes.com and choose one of our Loan Advisors to help you understand which one might fit your situation!
