Discount points

A buydown is a way to lower your initial interest rate on your mortgage. You accomplish this by paying additional points on your mortgage. A point is simply one percent of your loan total. The buyer usually has the option to pay as many points as they would like. Each increasing point will lower your mortgage rate a certain level.

Buy-Downs

The payment of additional points in return for a lower mortgage rate

Discount Points

Each discount point equals one percent of your loan amount