Buydown of mortgage rate
Within a month, we will be ready to convert from construction to permanent loan. So far our loan process has been trouble-free. Our mortgage rep at the bank just gave us today's rate and let us know that we can buy down the rate for certain dollar amounts. We are not familiar with how buydowns work and would like to hear actual experiences in addition to the banker's opinion. If anyone here has done it, would you kindly explain how this works and why would one do it? How do you figure out if it makes sense in the long run? We plan to stay in this house at least 10-15 years.