Use Our Money to Buy Your Home Now! Qualified Buyers Could Get 4.99% New Home Financing and Up to $15k In Closing Costs*.


It Pays to Finance a Home with a Boyd Homes Preferred Lender.


Financing a home requires careful planning and consideration. When you work with one of our Preferred Lenders to buy a new Boyd home, we are not only offering an incredible $15,000 in closing costs for new home contracts through April 30, 2024, but now, for a limited time, we can also offer 4.99% home financing to qualified buyers.* You could save THOUSANDS up front AND approximately $3600 in payments the first year you own your home. What a WIN! WIN! WIN!

So what is a mortgage buy down? A mortgage buy down is a financial strategy where a borrower pays an additional amount up front to reduce their mortgage interest rate and monthly payments over the life of the loan or a specific period of time. It can get confusing, so we will explain.

There are a few different ways a home buyer can lower the interest rate of the loan, which lowers the monthly payment. When you do a mortgage buy down each mortgage discount point equals one percent of your total loan amount and generally lowers the interest rate on your interest rate by 0.25%. For example, if your mortgage loan is $450,000 and your interest rate is 7.5%, one point costs $4,500 and lowers your monthly interest to 7.25%.

If you did a web search, you most likely found information for a traditional, permanent mortgage buy down. That isn’t your only option! There are also 3-2-1, 2-1, and 1-0 mortgage buy downs. The 2-1 mortgage buy-down is the one we will explain here. Let’s say you are buying a $450,000 home and the current APR is 7.0%. The rate on a 2-1 mortgage buy down will then be 6.75% for the first 2 years you own your home, then 7% for the remainder of the loan. Why is this a popular option? A couple of great reasons!

  1. First, if you go through a Boyd Homes preferred lender you could use seller’s contribution toward closing costs to buy down your rate 1 point.*
  2. Second, you can always refinance at a lower rate, which saves more money later. And, if the rate goes down and you wish to refinance during the first 2 years, your savings for the first 2 years of reduced interest will be reflected in your payoff.
  3. Third, the buy down amount is the same for everyone no matter of your credit score. You could still get a lower rate offered by Boyd Homes through a preferred lender if you qualify for the loan at the sale price.*

Things to know:

  1. You will need to first qualify for the loan amount you will finance at the original rate.
  2. You need to talk to a preferred lender to find out how to get $15k in closing costs from Boyd Homes and apply it to your mortgage buy down.
  3. Regardless of your finance rate, buying a home right now is still a great investment due to the rapid increase in home values happening right now.

Let’s explore the benefits of a mortgage buy down and how it can help homeowners save money in the long run.

Lower Monthly Payments

The primary benefit of a mortgage buy down is that it can significantly lower your monthly mortgage payments. By paying a lump sum up front to reduce your mortgage interest rate, you can enjoy lower monthly payments. This can be especially helpful for homeowners who are looking to save money on their monthly expenses or who are on a tight budget.

Cost Savings Over Time

Over the life of your mortgage, a mortgage buy down can save you a significant amount of money in interest payments. By reducing your mortgage interest rate, you’ll pay less interest over time, which can add up to thousands of dollars in savings. This can be especially beneficial for homeowners who plan to stay in their home for an extended period and want to maximize their cost savings.

Easier Budgeting

By lowering your monthly mortgage payments, a mortgage buy down can make it easier to budget for your other expenses. This can be especially helpful for homeowners who have variable income or who want to save money for other goals, such as retirement or college savings. With a lower monthly mortgage payment, you’ll have more financial flexibility to allocate your money where you need it most.

Income Tax Deduction

When you buy down your mortgage, you’re essentially paying a lump sum up front to reduce your mortgage loan payment. This means that you may be able to write that amount as a tax deduction. Talk to your financial advisor or accountant about the possible advantages.


Q: How Do I Do a Mortgage Buy Down?

A: First, talk to a lender. When considering a mortgage buy down, you must decide how much of the loan principal you are able and willing to pay up front. Your lender can help you. This amount is usually paid as points, which are a percentage of the total loan amount.

  • You will then need to arrange to pay the points at closing, either in cash, through a loan, or through a home buying incentive offered by a home builder or current owner.
  • Finally, you will need to sign the documents at closing that reflect the new loan terms.


Q: Are there extra fees charged for a mortgage buy down?

A: The short answer is yes. But talk to your lender and find out if so and exactly how much.


Q: Why Do a Mortgage Buy Down?

A: In addition to a lower interest rate and lower monthly payments, with a mortgage buy down, you buy yourself some time to pay a lower amount while watching the market for just the right time to refinance so you can possibly refinance later at a lower rate.


Q: Who can help me with a mortgage buy down?

A: • A mortgage lender or banker can help you determine if a mortgage buy down is right for your situation and help guide you through the process.

  • A financial advisor can help you assess your financial goals and objectives, and help you determine if a mortgage buy down is the right choice for you.
  • An experienced closing attorney can help you understand the legal aspects of a mortgage buy down and make sure all the documents are properly completed.


Q: Can I use the $15k in closing costs offered by Boyd Homes if I used a preferred lender towards a mortgage buy-down?

A: YES! Talk to a preferred lender about qualifying.*

A mortgage buy down can offer many benefits for homeowners who are looking to save money on their monthly mortgage payments and maximize their long-term cost savings. By paying a lump sum upfront to reduce your mortgage interest rate, you can enjoy lower monthly payments, easier budgeting, increased home equity, and significant cost savings over the life of your loan. If you’re considering a mortgage buy down, be sure to talk to your lender or financial advisor to determine if it’s the right option for you.

If you are buying a new construction home with Boyd Homes, we have preferred lenders who can work with you on special buying incentives, finance options, and mortgage buy-down opportunities only available by working with a preferred lender.*

*Terms and conditions apply. Contracts, financing, and closing must be through a Boyd Homes on-site agent, preferred lender, and title agency.

Talk to a Preferred Lender and find out if you qualify. Then talk to an on-site agent about your new home options.