HOOK
Thinking about paying extra upfront to lower your mortgage rate? [Quick cuts: loan estimate, calculator, house keys] A rate buydown can save money—but only if you keep the loan long enough for the savings to beat the cost.
KEY POINT 1
Here’s the basic idea: a buydown means you pay points or extra fees at closing to reduce your interest rate. [Animation: upfront cost arrow down to monthly payment] That can lower your monthly payment right away, which helps if cash flow matters.
KEY POINT 2
But the real question is break-even. [On-screen: “Upfront cost ÷ monthly savings = break-even months”] Divide what you pay upfront by how much you save each month. If you expect to move, refinance, or sell before that break-even point, the buydown may not pay off.
KEY POINT 3
Not all buydowns are the same. [B-roll: lender paperwork, close-up of rate sheet] A permanent buydown lowers the rate for the life of the loan. A temporary buydown, like a 2-1 buydown, lowers payments for the first few years only. That can help early on, but your payment will rise later.
KEY POINT 4
Always compare the buydown against other options: a bigger down payment, lender credits, or just keeping cash in savings. [B-roll: side-by-side comparison chart] The best choice is the one that fits your timeline, budget, and how long you plan to stay in the home.
CTA
Before you sign, ask your lender for the exact cost, monthly savings, and break-even month in writing. [On-screen text: “Cost, savings, break-even”] That one step can keep you from paying for a deal that looks good only on paper. If you want, I can also help you compare a buydown to lender credits.
