Buy Down Mortgages in Millington, TN | Mortgages Investors Group Buy Down Mortgages in Millington, TN | Mortgages Investors Group

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Rate Buydowns

By Mortgage Investors Group
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Rate Buydowns in Millington, TN

When you get a mortgage, you DO have some control over your interest rate.
One way to get a better rate is through a rate buydown, which can lower your monthly payments.

Buying Mortgage Discount Points in Millington, TN

The easiest way to buy down your mortgage rate is to buy discount points. Each point is 1.0 percent of your mortgage amount, and reduces your mortgage rate by 0.25 percent. For example, if you are offered a 6 percent interest rate on a $100,000 loan, you can pay one point ($1,000) to get a 5.75 percent interest rate instead. You can buy down your interest rate by up to 1.0 percent to reduce your interest costs and get a lower payment.

Before you choose to complete a rate buydown, make sure you take the time to compare your monthly savings with how long you plan to own the home. How many months will it take to break even? The longer you stay in the home, the more a rate buydown will pay off.

Sometimes you can roll the cost of discount points into your home loan, but this can defeat the purpose of the points by reducing your savings and changing your loan-to-value ratio, which may make other costs go up.

Mortgage Rate Buy Downs in Millington, TN

Temporary Rate Buydown in Millington, TN

Some borrowers opt for a temporary buydown, offered by the seller. This approach involves the seller depositing funds into an escrow account upfront, effectively lowering the mortgage's interest rate for the initial one to three years. Consequently, this arrangement can temporarily decrease the monthly mortgage payments for the borrower. You can use our temporary buy down calculator here to see how it could work for you.

Buying Mortgage Discount Points in Millington, TN

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Mortgage Buydown Calculator

Over 30 years you will pay $1,254,557. Your total principal payment is $500,000 and your total interest payment is $745,994. Your total buydown fee for this loan is $7,525 ($0 is paid by a third-party and $7,525 is paid by you).


Payment Breakdown

The following payments do not include property tax, insurance, or HOA fees. Results are hypothetical and may not be accurate. This is not a commitment to lend nor a preapproval.

Year 1 Payments 1-12 $3,160/mo Phase: 1% lower Rate: 6.5% Reduction: $336
Year 2-30 Payments 13-360 $3,496/mo Phase: 0% lower Rate: 7.5% Reduction: $0

Amortization Chart

The following payments do not include property tax, insurance, or HOA fees. Results are hypothetical and may not be accurate. This is not a commitment to lend nor a preapproval.


Amortization Schedule

The following payments do not include property tax, insurance, or HOA fees. Results are hypothetical and may not be accurate. This is not a commitment to lend nor a preapproval.

Date
Payment
Amount
Principal
Interest
Total Interest
Total Principal
Buydown
Balance
Mar 2025
1
$3,160
$452
$2,708
$2,708
$452
$336
$499,548
Apr 2025
2
$3,160
$454
$2,706
$5,414
$906
$336
$499,094
May 2025
3
$3,160
$457
$2,703
$8,118
$1,363
$336
$498,637
Jun 2025
4
$3,160
$459
$2,701
$10,819
$1,823
$336
$498,177
Jul 2025
5
$3,160
$462
$2,698
$13,517
$2,285
$336
$497,715
Aug 2025
6
$3,160
$464
$2,696
$16,213
$2,749
$336
$497,251
Sep 2025
7
$3,160
$467
$2,693
$18,906
$3,216
$336
$496,784
Oct 2025
8
$3,160
$469
$2,691
$21,597
$3,685
$336
$496,315
Nov 2025
9
$3,160
$472
$2,688
$24,286
$4,157
$336
$495,843
Dec 2025
10
$3,160
$475
$2,686
$26,972
$4,632
$336
$495,368
Jan 2026
11
$3,160
$477
$2,683
$29,655
$5,109
$336
$494,891
Feb 2026
12
$3,160
$480
$2,681
$32,335
$5,589
$336
$494,411
Mar 2026
13
$3,496
$406
$3,090
$35,426
$5,995
$0
$494,005
Apr 2026
14
$3,496
$409
$3,088
$38,513
$6,403
$0
$493,597
May 2026
15
$3,496
$411
$3,085
$41,598
$6,814
$0
$493,186
Jun 2026
16
$3,496
$414
$3,082
$44,680
$7,228
$0
$492,772
Jul 2026
17
$3,496
$416
$3,080
$47,760
$7,644
$0
$492,356
Aug 2026
18
$3,496
$419
$3,077
$50,837
$8,063
$0
$491,937
Sep 2026
19
$3,496
$421
$3,075
$53,912
$8,484
$0
$491,516
Oct 2026
20
$3,496
$424
$3,072
$56,984
$8,909
$0
$491,091

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