Princeton Town Topics – Let’s Talk Real Estate – November 4, 2026
A MORTGAGE BUYDOWN: A POWERFUL SELLING STRATEGY
With mortgage rates still influencing buyers’ decisions, sellers may want to consider a strategy called a temporary mortgage buydown. Rather than lowering the asking price, a seller can contribute money toward reducing the buyer’s mortgage interest rate for the first two years.
For example, a seller-funded 2-1 buydown on a $12,000 contribution could save a buyer approximately $650 per month during the first year and $325 per month during the second year. Compare that with a $25,000 price reduction, which might save only about $170 monthly in the same scenario!
The advantage? Buyers enjoy meaningful upfront savings while sellers preserve the contract sales price. It can be a win-win negotiation tool, particularly for listings facing competition or buyers hesitant about today’s rates.
A temporary buydown isn’t right for every transaction, and loan-program guidelines apply. However, it’s worth exploring. Sometimes, the right financing incentive can make all the difference in getting a buyer off the fence!
