How a Mortgage Rate Buydown Can Offset Today’s Higher Interest Rates

Orange County Register, Aug. 6, 2026-Jeff Lazerson

Payment affordability is always a top priority for buyers. One way to get around today’s higher interest rates is through an interest rate buydown. A buydown allows an interested party contribution or IPC (buyer, home seller, or realty agent) to pay points in the form of an upfront fee in order to lower the mortgage interest rate.

There are two types of interest rate buydowns. One is a permanent buydown and the other a temporary buydown, typically on fixed rate mortgages. There also is a dearth of adjustable-rate mortgages offering buydowns.

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