💡 Should You Buy Down Your Mortgage Rate? Let’s Break It Down.

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Aug 4, 2025
1 min read

Updated: Dec 30, 2025

If you’re shopping for a home loan, you’ve likely heard the term “buying down your rate.” But is it really worth it? Let’s do the math together.

Say you lock in a 6.5% interest rate — your monthly principal and interest would be around $3,160. Now, if you decide to buy down the rate to 6.25%, it’ll cost you roughly $6,200 upfront. Your new monthly payment would be $3,079, saving you just $81 per month.

So what’s the catch?

To break even, it would take about 6.4 years of living in that home before the savings offset the upfront cost. If you're not planning to stay that long, the buy-down might not be worth it.

🎯 Bottom Line:

Every borrower’s situation is different. That’s why it’s important to speak with a loan expert before making a decision. The LJ Mortgage Team Inc. is here to help you weigh your options and make the smartest financial move for your future.