Mar 22, 2025 - News
Speaking of those buydowns …
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Roughly 2.7% of new homes offered buydowns in 2024, compared to less than 1% of existing homes in the D.C. area.
Why it matters: Buydowns, or lowering interest rates upfront, can knock 1 to 3 percentage points off your mortgage rate.
Between the lines: It's one way to lure buyers who are spooked by new construction costs.
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 says.
This tactic isn't new, but it's been popular in recent years — and likely will continue to be — due to elevated mortgage rates.