: You can "buy down" your interest rate by paying a one-time upfront fee at closing. Cost : Typically 1% of your total loan amount.
If standard market rates are higher than your budget allows, consider these common industry strategies:
: Your rate is 2% lower in the first year and 1% lower in the second year before returning to the full rate in year three.
: Offers even steeper initial discounts (3%, 2%, then 1%) over the first three years.
: One point often reduces your rate by about 0.25% for the life of the loan.