10/17/2026
What would you rather have??
If you were a leaf peeper driving around with your top down this glorious fall weekend.
Imagine you are finally ready to buy your mountaintop getaway with a view.
You've got 20% down and a great credit score; you are well qualified to purchase.
Would you rather have 5% off the price of that $600,000 listing?
or
Would you prefer a 3% mortgage interest rate buydown?
Let's compare using today's mortgage interest rate market.
This is not a rate quote, just an example.
$600,000 Seller drops $30,000, 5% off = Buy the house for $570,000 for $3,157 per month P/I
$600,000 FULL PRICE Seller offers 3% discount points = Buy the house for $600,000 for $3,034 per month P/I
Seller saves $12,000, and buyer saves 123 bucks per month for the life of the loan, if held for the full term.
Some lenders like to say buy the home, date the rate, so you will refi in a few years.
I say avoid the cost of refinancing later by negotiating smarter now.
If your borrower sincerely believes rates will fall over the next five years.
Use this comparison and let's celebrate a 3/1 temporary rate buydown rather than the permanent rate above.
SAME AS ABOVE but for a buyer that wants to buy the house and date the rate (planning to refi).
$600,000 Seller drops $30,000, 5% off = Buy the house for $570,000 for $3,157 per month P/I
$600,000 Seller offers $22,426 3/1 temporary rate buydown = Buy the house for $600,000.
First year payment = $2,404 that's a payment equivalent to a 4.4% interest rate P/I for the first full year!
Second year payment = $2,695 5.4%
Third year payment = $3,002 6.4%
Fourth year and beyond = $3,323 7.4% note rate
I hope you can see this as a viable option for families believing rates will come down 2027-2030!
Our goal here is to save seller money,
save buyer money,
and help you put a deal together.
This is the strategy used by the largest, most profitable builders in the country.
This is what we all had to do the last time rates were above 7%!
Saving money is the common ground to bring parties together.
Call for a specific analysis for your buyers and sellers.
We are always here working weekends and into the evening alongside you.
828.482.7659
Russ
Illustrations assume a 30-year fixed-rate loan, 20% down, a hypothetical 7.4% starting note rate, and rounded monthly principal-and-interest payments. Taxes, insurance, HOA dues, and other charges are excluded. The permanent buydown example assumes a hypothetical 6.5% rate obtained with 3 discount points; actual point costs and rate reductions vary. The temporary 3/1 buydown example uses a 7.4% contractual note rate with payments subsidized during the first three years. The full contractual payment applies beginning in year four. Program eligibility, property occupancy, seller-contribution limits, and lender approval apply. Future mortgage rates and refinancing opportunities are not guaranteed. This is not a rate quote or an offer to lend.
Russ Fitzpatrick
Mortgage Loan Originator
Mortgage the Mountains
NMLS #2712875
828-482-7659
[email protected]
CMS Mortgage Solutions This is not a commitment to lend. All loans are subject to credit approval and underwriting approval. Rates, terms, and programs are subject to change without notice.
CMS Mortgage Solutions Inc. All Rights Reserved.
NMLS #212405 | www.nmlsconsumeraccess.org
Licensing information: www.cmsmortgage.com
