{"id":8051,"date":"2023-10-23T19:31:28","date_gmt":"2023-10-23T23:31:28","guid":{"rendered":"https:\/\/migonline.com\/blog\/?p=8051"},"modified":"2023-09-28T19:35:48","modified_gmt":"2023-09-28T23:35:48","slug":"how-buy-down-mortgages-can-shape-your-homeownership-journey","status":"publish","type":"post","link":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/","title":{"rendered":"How Buy-Down Mortgages Can Shape Your Homeownership Journey"},"content":{"rendered":"<p>One of the most important elements of a successful homebuying journey is knowing your options. There are choices to make throughout the process that can save you money in the long run.<\/p>\n<p>A mortgage buy-down is one of those options to consider. Let&#8217;s talk about what it is, and the benefits and drawbacks of using it.<\/p>\n<h2>What&#8217;s a Mortgage Buy-Down?<\/h2>\n<p>When borrowers pay in advance to lower the interest rate on their mortgage loan, it&#8217;s referred to as a mortgage buy-down (also called paying for discount points). Borrowers essentially <a href=\"https:\/\/migonline.com\/rate-buy-down\">buy down the mortgage interest rate<\/a> upfront for the life of their loan.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-8053\" src=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/buy-down1.jpg\" alt=\"\" width=\"600\" height=\"399\" srcset=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/buy-down1.jpg 600w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/buy-down1-300x200.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<h2>Benefits of a Mortgage Buy-Down?<\/h2>\n<p>There are two significant benefits that compel some homebuyers to choose a mortgage buy-down in their purchasing journey.<\/p>\n<ul>\n<li><strong>It reduces monthly interest costs.<\/strong> A buy-down can decrease your monthly mortgage payment amount. A lower mortgage payment won&#8217;t strain your budget as much and can free up funds for other important things.<\/li>\n<li><strong>It saves money in the long run. <\/strong>By securing a lower interest rate for your mortgage, you can save money every month. Over the 15, 20 or 30 years of your mortgage loan&#8217;s life, these savings can add up to a lot of money.<\/li>\n<\/ul>\n<h2>Drawback of a Mortgage Buy-Down?<\/h2>\n<p>As with any decision, you must weigh the good things about it with the not-so-great. The negatives about using a mortgage buy-down are:<\/p>\n<ul>\n<li><strong>It can be costly upfront. <\/strong>Buy-downs can cost several thousand dollars at the beginning of your purchasing process. Since saving a down payment to secure a mortgage can tax your budget to the limit, making a buy-down could be out of reach.<\/li>\n<li><strong>Some buy-downs are temporary. <\/strong>Depending on how the buy-down is structured, it may not be available over the entire life of your mortgage loan. It this is the case, using it might not be worth the expense.<\/li>\n<\/ul>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-8054\" src=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/buy-down2.jpg\" alt=\"\" width=\"600\" height=\"398\" srcset=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/buy-down2.jpg 600w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/buy-down2-300x199.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/h2>\n<h2>When Should You Consider a Mortgage Buy-Down?<\/h2>\n<p>Certain situations make mortgage buy-downs a better option than others. Consider a buy-down if you:<\/p>\n<ul>\n<li><strong>Plan on living in the home long-term.<\/strong> If you&#8217;re buying a starter home or expecting to move in a few years, paying for a buy-down may not benefit you.<\/li>\n<li><strong>Are dealing with high interest rates.<\/strong> In a high-interest market, a buy-down can increase a home&#8217;s affordability.<\/li>\n<li><strong>Have a surplus of savings.<\/strong> If you have a healthy down payment ready to go and money left over, putting it to work in a buy-down may be a savvy financial move.<\/li>\n<\/ul>\n<p>Talk to your loan officer about buy-downs to determine if they&#8217;re right for your situation. Whether you choose to use a mortgage buy-down, knowing how the process works and what it can do for you is an integral part of your homeownership education.<\/p>\n<p><a href=\"https:\/\/migonline.com\/get-started\">Contact MIG today<\/a> to discuss your mortgage options with one of our local loan officers and get pre-approved for a loan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the most important elements of a successful homebuying journey is knowing your options. There are choices to make throughout the process that can save you money in the long run. A mortgage buy-down is one of those options to consider. Let&#8217;s talk about what it is, and the benefits and drawbacks of using &hellip; <a href=\"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">How Buy-Down Mortgages Can Shape Your Homeownership Journey<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":8052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[61],"tags":[],"class_list":["post-8051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgage"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Buy-Down Mortgages Can Shape Your Homeownership Journey - Mortgage Investors Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Buy-Down Mortgages Can Shape Your Homeownership Journey - Mortgage Investors Group\" \/>\n<meta property=\"og:description\" content=\"One of the most important elements of a successful homebuying journey is knowing your options. There are choices to make throughout the process that can save you money in the long run. A mortgage buy-down is one of those options to consider. Let&#8217;s talk about what it is, and the benefits and drawbacks of using &hellip; Continue reading How Buy-Down Mortgages Can Shape Your Homeownership Journey &rarr;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/\" \/>\n<meta property=\"og:site_name\" content=\"Mortgage Investors Group\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-23T23:31:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/blog-buy-down-mortgages-2023.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Moneek\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Moneek\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/\"},\"author\":{\"name\":\"Moneek\",\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/#\\\/schema\\\/person\\\/e645814d2c402404da5d0c931b0adb40\"},\"headline\":\"How Buy-Down Mortgages Can Shape Your Homeownership Journey\",\"datePublished\":\"2023-10-23T23:31:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/\"},\"wordCount\":486,\"image\":{\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/migonline.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/09\\\/blog-buy-down-mortgages-2023.png\",\"articleSection\":[\"Mortgage\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/\",\"url\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/\",\"name\":\"How Buy-Down Mortgages Can Shape Your Homeownership Journey - Mortgage Investors Group\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/migonline.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/09\\\/blog-buy-down-mortgages-2023.png\",\"datePublished\":\"2023-10-23T23:31:28+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/#\\\/schema\\\/person\\\/e645814d2c402404da5d0c931b0adb40\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/#primaryimage\",\"url\":\"https:\\\/\\\/migonline.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/09\\\/blog-buy-down-mortgages-2023.png\",\"contentUrl\":\"https:\\\/\\\/migonline.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/09\\\/blog-buy-down-mortgages-2023.png\",\"width\":1024,\"height\":512},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/2023\\\/10\\\/23\\\/how-buy-down-mortgages-can-shape-your-homeownership-journey\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/migonline.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How Buy-Down Mortgages Can Shape Your Homeownership Journey\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/migonline.com\\\/blog\\\/\",\"name\":\"Mortgage Investors Group\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/migonline.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/migonline.com\\\/blog\\\/#\\\/schema\\\/person\\\/e645814d2c402404da5d0c931b0adb40\",\"name\":\"Moneek\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How Buy-Down Mortgages Can Shape Your Homeownership Journey - Mortgage Investors Group","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/","og_locale":"en_US","og_type":"article","og_title":"How Buy-Down Mortgages Can Shape Your Homeownership Journey - Mortgage Investors Group","og_description":"One of the most important elements of a successful homebuying journey is knowing your options. There are choices to make throughout the process that can save you money in the long run. A mortgage buy-down is one of those options to consider. Let&#8217;s talk about what it is, and the benefits and drawbacks of using &hellip; Continue reading How Buy-Down Mortgages Can Shape Your Homeownership Journey &rarr;","og_url":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/","og_site_name":"Mortgage Investors Group","article_published_time":"2023-10-23T23:31:28+00:00","og_image":[{"width":1024,"height":512,"url":"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/blog-buy-down-mortgages-2023.png","type":"image\/png"}],"author":"Moneek","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Moneek","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/#article","isPartOf":{"@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/"},"author":{"name":"Moneek","@id":"https:\/\/migonline.com\/blog\/#\/schema\/person\/e645814d2c402404da5d0c931b0adb40"},"headline":"How Buy-Down Mortgages Can Shape Your Homeownership Journey","datePublished":"2023-10-23T23:31:28+00:00","mainEntityOfPage":{"@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/"},"wordCount":486,"image":{"@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/#primaryimage"},"thumbnailUrl":"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/blog-buy-down-mortgages-2023.png","articleSection":["Mortgage"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/","url":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/","name":"How Buy-Down Mortgages Can Shape Your Homeownership Journey - Mortgage Investors Group","isPartOf":{"@id":"https:\/\/migonline.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/#primaryimage"},"image":{"@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/#primaryimage"},"thumbnailUrl":"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/blog-buy-down-mortgages-2023.png","datePublished":"2023-10-23T23:31:28+00:00","author":{"@id":"https:\/\/migonline.com\/blog\/#\/schema\/person\/e645814d2c402404da5d0c931b0adb40"},"breadcrumb":{"@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/#primaryimage","url":"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/blog-buy-down-mortgages-2023.png","contentUrl":"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2023\/09\/blog-buy-down-mortgages-2023.png","width":1024,"height":512},{"@type":"BreadcrumbList","@id":"https:\/\/migonline.com\/blog\/2023\/10\/23\/how-buy-down-mortgages-can-shape-your-homeownership-journey\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/migonline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"How Buy-Down Mortgages Can Shape Your Homeownership Journey"}]},{"@type":"WebSite","@id":"https:\/\/migonline.com\/blog\/#website","url":"https:\/\/migonline.com\/blog\/","name":"Mortgage Investors Group","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/migonline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/migonline.com\/blog\/#\/schema\/person\/e645814d2c402404da5d0c931b0adb40","name":"Moneek"}]}},"_links":{"self":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/8051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/comments?post=8051"}],"version-history":[{"count":1,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/8051\/revisions"}],"predecessor-version":[{"id":8055,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/8051\/revisions\/8055"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/media\/8052"}],"wp:attachment":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/media?parent=8051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/categories?post=8051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/tags?post=8051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}