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Whats the difference between a temporary buydown and a permanent buydown?

April 26, 2017buydown PERMANENT Temporary

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Whats the difference between a temporary buydown and a permanent buydown?

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A temporary buydown reduces your interest rate in the early years of a mortgage loan. in exchange for an up-front cash payment to the lender provided by the home buyer, the seller, or both. A permanent buydown is the payment of points in exchange for a lower interest rate for the life of the loan.