Mortgage Rates, Buydowns & Points
Rates are set by the market and by each lender, not by a real estate agent. What you can control is understanding how buydowns, points, rate locks and disclosures work so you can compare the full financing package rather than just the headline rate.
Last reviewed 2026-09-09
How do mortgage rate buydowns and points actually work?
A mortgage rate buydown uses money to reduce the borrower’s mortgage interest rate or effective payment under the terms of the loan. There are two very different categories: a permanent buydown, where the borrower pays discount points or other permitted funds for a lower contractual rate, and a temporary buydown, where the underlying note rate does not necessarily change but funds subsidize part of the payment during an initial period (a 2-1 buydown is a common example). Rates and program requirements are set by the market and each lender and change over time, so all figures here are illustrative, not quotes. Lisa does not set rates or approve financing; your lender provides actual pricing.
Rate, Buydown & Point Guides
Understand each piece of the financing package before you compare offers.
What Is a Mortgage Rate Buydown?
The two very different categories: permanent and temporary buydowns.
What Is a 2-1 Mortgage Buydown?
How a temporary payment subsidy works and what happens when it ends.
Permanent vs. Temporary Mortgage Buydown
Which strategy fits different buyers and how to compare break-even.
What Are Mortgage Discount Points?
Upfront charges that buy mortgage pricing, and the break-even math.
Should You Pay Points to Lower Your Rate?
When paying points may save money and when preserving cash wins.
What Is a Mortgage Rate Lock?
Locking pricing for a defined period and what happens if closing is delayed.
What Is a Mortgage Float-Down Option?
How some lenders may offer improved pricing if rates fall after you lock.
APR vs. Interest Rate
Why comparing only the advertised rate can be misleading.
How to Read a Loan Estimate
Look at the entire package, not just the rate.
What Is a Closing Disclosure?
The final disclosure to review carefully before you sign.
Rates, Buydowns & Points Tools
Mortgage Points Break-Even Calculator
See when paying points actually pays off.
GuideBuyer Offer Strategy Calculator
Compare a lower price, seller credit, buydown or combination.
GuideMortgage Calculator
Estimate the full monthly payment.
GuideWhat Are Closing Costs?
Where points and buydown funds appear at closing.
GuideAssumable Mortgages Hub
Keep a low existing rate instead of a new mortgage.
GuideUnderstanding Builder Incentives
Compare the whole new-construction offer.
Lisa C Hamilton is a Nevada REALTOR®, not a lender. Mortgage rates and lender pricing are set by the market and each lender; there is no guaranteed relationship between a point and a rate change. A 2-1 structure, lock periods and float-down terms are illustrative and vary by lender and current program rules. Your lender provides exact rate and point options; verify current program requirements with the applicable agency (CFPB, HUD/FHA, VA, Fannie Mae or Freddie Mac) and your lender.
Compare the financing package, not just the rate.
Lisa can help negotiate seller concessions that a lender may apply toward a permitted buydown or points, and she coordinates the real-estate timeline so financing decisions don't jeopardize the house.