3-2-1 Buydown vs Permanent Rate Reduction: Which Saves More Over the Life of Your Loan?

A permanent 1-point rate cut saves roughly $57,000 more than a 3-2-1 buydown over 30 years on a $400,000 mortgage—but the buydown wins on short-term cash flow.

A permanent 1-point rate cut saves roughly $57,000 more than a 3-2-1 buydown over 30 years on a $400,000 mortgage—but the buydown wins on short-term cash flow.