Don't settle for High Interest Rates: How a Rate Buydown Can Save You Thousands

What if I told you…

You don’t have to beg the Fed to lower interest rates. You can literally buy one—or negotiate one.

📉 It’s called a rate buydown, and it’s one of the most underrated tools in today’s real estate market.

Whether you’re buying or selling in Lafayette, Carencro, Youngsville, or anywhere nearby, understanding this strategy can save you (or make you) thousands.

💡 What is a Mortgage Rate Buydown?

A rate buydown is when the buyer—or seller—pays an upfront fee at closing to reduce the interest rate on the loan.

That reduction can be:

• Temporary: Like a 2-1 buydown (more on that in a sec 👇)

• Permanent: A lifelong reduction in the rate for the full loan term

Lower interest = lower monthly mortgage payments. And that’s real savings you’ll feel every single month.

🧮 Example Time

Let’s say you’re buying a $275,000 home and get a 7.0% interest rate with a 2-1 buydown:

• Year 1: You pay 5.0%

• Year 2: You pay 6.0%

• Year 3 and on: You pay 7.0% (the original rate on the loan)

That savings in the first two years? It can easily total $4,000–$6,000+.

🙋‍♀️ Buyers: You Have Options

Don’t let interest rates keep you out of homeownership. You can negotiate a rate buydown in your offer—especially if the seller has room to play with the price. Sometimes, it’s smarter to ask for a buydown instead of a price cut.

A great Realtor® (hey 👋) will help you structure the offer right and pair you with a lender who knows how to make it work.

🏠 Sellers: Make Your Listing Stand Out

If your home is sitting a little longer, or you're open to flexibility on price, here’s your move:

Offer a rate buydown as an incentive.

🔥 Instead of dropping your price by $10,000, offering a $5,000 seller credit to buy down the buyer’s rate could:

• Increase buyer affordability

• Attract more offers

• Get you under contract faster

It’s a win-win when the numbers make sense.

💬 Real Talk From a Local Pro

As a top-producing Realtor® in Lafayette, I’ve helped first-time buyers, sellers, and investors navigate tough markets. Rate buydowns are one of the smartest, most underutilized tools—and I’m here to walk you through them.

If you’re curious whether this could work for you (buyer or seller), let’s chat.

👇

Let's chat real estate