Searching for rate relief
Add Axios as your preferred source to
see more of our stories on Google.
Mortgage buydowns remained a popular tool for sellers to win over sticker-shocked buyers in Arizona last year — especially among new construction, per a recent report from Realtor.com.
Why it matters: Buydowns can knock 1 to 3 percentage points off a mortgage rate, which could make all the difference for first-time home buyers looking to break into the market.
By the numbers: Home listings in Arizona last year included an offer of a mortgage buydown for 8% of new construction and 2% of existing homes, per Realtor.com.
How it works: Sometimes builders have in-house or affiliate financiers that allow them to offer incentives, like buydowns, to prospective new-home buyers, Realtor.com's Joel Berner said.
Yes, but: A seller or buyer of an existing home can buy down the mortgage rate, too, Berner said.
The intrigue: Many sellers are opting to do this as a concession instead of lowering the overall price of the home.
- It often ends up being less costly for the seller and more beneficial for the buyer in the long run, real estate experts told us.