Seattle Mortgage Buydown Options

A mortgage buydown is a financing strategy that allows a buyer, seller, or builder to pay discount points upfront to reduce the interest rate on a home loan. In Seattle, WA, where home prices and monthly payments can be higher than the national average, buydown options are commonly used to improve affordability and loan qualification.

Buydowns are most often used on purchase transactions and may be structured as either temporary or permanent, depending on the borrower’s goals and financial outlook.

What Is a Mortgage Buydown?

A buydown allows interest to be prepaid at closing so the loan carries a lower effective interest rate, either temporarily or for the full loan term.

• Lower monthly mortgage payments
• Improved debt-to-income (DTI) qualification
• Greater purchasing power
• More effective seller or builder incentives

Permanent Buydown

A permanent buydown reduces the interest rate for the entire life of the loan, typically a 30-year fixed mortgage.

• Often paid by sellers or builders
• Creates long-term payment stability
• Frequently less costly than a price reduction

Temporary Buydowns

Seattle Buydown Comparison

Buydown Type	Rate Structure	Reduced Payment Period	Best For
3-2-1 Buydown	−3%, −2%, −1%	3 years	Expected income growth
2-1 Buydown	−2%, −1%	2 years	Short-term payment relief
Permanent Buydown	Fixed lower rate	Full loan term	Long-term homeowners

Actual rates, payments, and costs vary based on borrower qualifications, loan program, and market conditions.