Discount Points vs Temporary Buydown

Compare permanent rate reduction vs temporary lower payments

Comparison Details

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Frequently Asked Questions

Discount points permanently reduce your rate for the entire loan term. A temporary buydown reduces your rate only for the first 1-3 years, then reverts to the full rate.
Points are better if you'll keep the loan 5+ years. A buydown is better if you plan to refinance soon or need lower initial payments to qualify.