Given our current real estate climate, sellers are starting to get more creative to try and attract buyers to their specific property, over another competing seller. One of the ways sellers are doing this is by offering potential buyers a closing credit to help the buyers buydown their interest rate. As of today, rates are hovering around 7.74%, in comparison to recent years, those numbers are pretty high, which unfortunately hampers most buyers purchasing power. So when a seller offers a few thousand dollars to temporarily (or permanently) buy down a buyers interest rate, it can make all of the difference in the world! Deciding between a temporary and permanent buydown depends on a few different factors, such as buyers qualifications, amount of cash on hand, and how long the buyers think they'll be living in the house. If you know you're buying a starter home that you will eventually sell once you're ready to find your "forever home", then a permanent buydown might not be the smartest financial decision. Conversely, if your buying your forever home, or a starter home that you plan on renting once you move into your forever home, then a permanent buydown might be the right move for you. The cost of, and the amount you buy your rate down depends on your financial qualifications, but in most cases you could permanently buydown your rate almost an entire percentage point (from 7.5% down to 6.5%) with enough cash. Temporary buy downs have become increasingly more popular with the recent rate rise, with the most popular being a two, or three year buydown. For example, the three year buydown would adjust your rate so that during the first year of ownership your rate is 3% lower than your standard rate, the second year is 2% lower than your standard rate, and the third years rate is 1% lower than your standard rate, then starting in the fourth year, through the rest of your loans term, you are at your standard rate. This route can provide a buyer more financial freedom allowing them to use more funds to update/upgrade their new property. For advice on your particular situation, I would give your favorite lender a call, and if you have yet to find a good lender, I would be more than happy to recommend some local options! | 
