If you’ve been watching mortgage rates lately, you’ve seen the headlines: the average 30-year fixed rate is sitting around 7.4% — the highest we’ve seen since November 2023, and up from 6.3% just a year ago. For a lot of buyers, that’s been enough to hit the pause button.
We get it. But here’s what we’d tell you over coffee: you don’t have to accept today’s rate as your rate. There’s a strategy our buyers are using right now to get a lower payment without waiting on the market — and it starts with a phone call to us.
What Is a Seller-Paid Rate Buydown?
A rate buydown is exactly what it sounds like: money paid upfront to “buy down” your mortgage interest rate, which lowers your monthly payment. The key part? The seller can pay for it — negotiated as part of your offer, just like repairs or closing costs.
There are two main flavors:
Temporary buydowns (like a 2-1 buydown). Your rate starts 2% below the market rate in year one, 1% below in year two, then goes to the full rate in year three. On a $450,000 loan at today’s rates, that can mean roughly $500+ less per month in the first year — real breathing room while you settle in, and a built-in cushion if rates fall and you refinance later.
Permanent buydowns (discount points). The seller’s contribution buys your rate down for the life of the loan. Every point (1% of the loan amount) typically shaves about a quarter-point off your rate — for as long as you own the home.
Why Would a Seller Agree to This?
This is where having the right agent matters. In today’s market, many sellers would rather contribute $10,000–$15,000 toward your buydown than drop their price by $25,000 or more — it costs them less out of pocket, and it keeps the recorded sale price strong (which protects neighborhood values, including theirs). It’s a win-win, but only if someone at the negotiating table knows how to structure it. That’s us.
Why Call Us First?
Buydowns aren’t one-size-fits-all. The right structure depends on your loan type, how long you plan to stay, and what the seller’s situation allows. We work directly with your lender to model the numbers, then negotiate the seller contribution into your offer — so you get the lowest payment the deal can support.
The bottom line: waiting for rates to drop could cost you the home you want. Buying smart today — with a seller-paid buydown doing the heavy lifting — gets you in the door with a payment that works.
Call the Tom May Real Estate Team at 214-223-4600 and ask us about seller-paid rate buydowns. We’ll run the numbers for your situation — no obligation.
The Tom May Real Estate Team | Serving Frisco & the Greater DFW Area
Note: This article is for informational purposes only and is not lending or financial advice. Loan programs, buydown structures, and eligibility vary — talk to your mortgage lender about what works for your specific situation.