Latest / Mortgage Research Network Podcast
Builder Buydowns: The Hidden Discount in New Homes
What if a new-construction home came with a rate 2–3% below market—without the builder losing money? In this episode, Tim Lucas and Craig Berry reveal how homebuilders are leveraging massive interest-rate buydowns to keep prices stable and protect community values. You’ll learn:The Buydown Mechanics: How builders “eat” tens of thousands in profit—up to $34K per FHA loan—to permanently slash borrowers’ ratesIncentive Shift: Why 80–85% of buyers now choose buydowns over fancy upgrades, and how 6.3% of a home’s price is being funneled into these dealsPrice vs. Rate: The appraisal magic that…
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