2026-09-27 · 5 min de lectura · Dallas-Fort Worth
Cut the Price or Buy Down the Rate? The Math, Not the Opinion
You’re negotiating on a house. The seller is willing to give you $15,000.
Your agent says, “Take it as a buydown.”
Your brother-in-law says, “Take it off the price.”
Both sound confident.
Neither one showed you the math.
Let’s do that.
The short answer
A 2-1 temporary buydown gives you the biggest payment relief during the first 24 months, but that benefit disappears afterward.
Permanent points give you less benefit upfront but continue lowering your payment for as long as you keep the loan.
A price reduction lowers your debt and increases your equity from day one, but that benefit generally doesn't become cash until you sell or refinance.
The real question is: how long do you plan to keep the loan?
The scenario: illustration only
Everything below is an example to illustrate the math, not a quote.
Payments are estimated principal and interest only. They exclude taxes, insurance, HOA, MUD and PID.
Price: $450,000
Down payment: $90,000
Loan: $360,000
Base rate: approximately 6.8%
Seller concession: $15,000
With no concession, the estimated payment is $2,346.93/month.
That is the number we're trying to improve.
Three ways to use the same $15,000
A, 2-1 temporary buydown
Year 1: payment based on a 4.8% rate
Year 2: payment based on 5.8%
Year 3 onward: back to 6.8%
The seller's contribution funds the monthly payment difference through the buydown structure.
B, Permanent points
The full $15,000 is used to buy a lower interest rate for the life of the loan.
For this illustration:
6.8% → 5.9%
The actual rate reduction depends on your lender and market conditions that day.
C, Price reduction
The price drops from $450,000 to $435,000.
With the same $90,000 down payment, the loan becomes $345,000.
The payments, simplified
No concession: $2,346.93/month
2-1 buydown, year 1: $1,888.80/month
2-1 buydown, year 2: $2,112.31/month
2-1 buydown, year 3+: $2,346.93/month
Permanent points at 5.9%: $2,135.29/month
Price reduction: $2,249.14/month
Here's the part almost nobody talks about:
The 2-1 buydown in this example only uses $8,313.06 of the $15,000 concession.
The savings are approximately:
$458.13/month × 12 months = $5,497.56
$234.62/month × 12 months = $2,815.50
That leaves approximately $6,686.94 of the concession available for other permitted costs, such as closing costs, depending on the loan rules.
Don't leave that money out of the comparison.
What happens after 3, 5 and 10 years?
This is where the decision gets interesting.
At 3 years
A, 2-1 buydown + credit
Cash benefit: $15,000
Equity advantage: $0
Illustrative total: $15,000
B, Permanent points
Cash benefit: $7,619
Equity advantage: $2,129
Illustrative total: $9,748
C, Price reduction
Cash benefit: $3,520
Equity advantage: $14,491
Illustrative total: $18,011
At 5 years
A, 2-1 buydown + credit
$15,000 cash benefit
$0 equity advantage
Total: $15,000
B, Permanent points
$12,698 cash benefit
$3,560 equity advantage
Total: $16,258
C, Price reduction
$5,867 cash benefit
$14,089 equity advantage
Total: $19,956
At 10 years
A, 2-1 buydown + credit
$15,000 cash benefit
$0 equity advantage
Total: $15,000
B, Permanent points
$25,397 cash benefit
$6,996 equity advantage
Total: $32,393
C, Price reduction
$11,735 cash benefit
$12,811 equity advantage
Total: $24,546
The break-even points
In this illustration:
Permanent points vs. buydown: points pass the buydown on pure cash around month 71.
Price cut vs. buydown: the price cut passes the buydown on pure cash around month 154.
Counting cash + equity, permanent points pass the buydown around month 56.
Permanent points pass the price cut around month 80.
The price cut starts ahead in equity from day one.
But there is a major difference between cash and equity:
Equity isn't money sitting in your bank account.
You generally need to sell or refinance to turn it into cash, and selling also comes with costs.
So which one should you choose?
Choose the 2-1 if...
Your priority is lowering your payment during the first 24 months.
It can make sense if you're moving and expect major upfront expenses such as furniture, appliances or a fence, or if you have a concrete reason to expect higher income.
It can also make sense if you expect to refinance relatively soon.
Important: you generally qualify using the non-reduced rate, not the temporary year-one rate. A buydown does not automatically mean you qualify for more house.
Choose permanent points if...
You plan to keep the loan for several years, especially if you don't want to depend on a future refinance.
The benefit continues for as long as you keep the loan.
Choose a price reduction if...
Your priority is lowering the loan balance and building equity.
It can also be especially useful when the contract price is facing an appraisal issue.
And remember: if the home doesn't appraise at the agreed price, changing the concession structure doesn't solve the appraisal problem by itself.
What I'd do first
Before choosing, ask your lender for three written scenarios using the same assumptions:
Temporary buydown.
Permanent points.
Reduced price.
Then compare:
Monthly payment.
Cash needed at closing.
Benefit during the first 24 months.
Loan balance after 3, 5 and 10 years.
How long you realistically expect to keep the loan.
Because “always ask for the buydown” is an opinion.
The best option depends on your numbers.
Your next step
If you already own a home and you're thinking about the next one, I can build you The Move-Up Report, a one-page analysis showing your current equity, what your payment could look like on the next home, and which structure may make the most sense based on your timeline.
It's free and comes with no obligation.
Text or call (469) 441-8890, or request it at veronicayeary.com.
P.S. If you already have an offer on the table, send me the price, down payment and seller concession. We can compare all three scenarios so you're making the decision with numbers, not opinions.