Buy Down

You can reduce your initial fixed rate by either paying points up front or buying down the rate. You can pay points to bring down the rate by paying a predetermined percent of the loan amount up front to reduce the rate over the long haul. As a rule of thumb, one point is equal to one percent of the loan amount and paying a point up front will reduce the loan interest rate by 1/4 % over the life of the loan. Points are defined as prepaid interest and therefore may be tax deductible.

Interested in buying down? Contact us to get started – call 1-800 LOAN-DML or use our contact form and a DML Mortgage expert will be in touch.