Arda Clark

    (310) 650-0960
    arda@carlandarda.com
    • About
      • Meet Carl
      • Meet Arda
      • Testimonials
    • Properties
      • Search for Homes
      • Search by Area
      • Mortgage Calculator
      • Featured Listings
    Carl and Arda Clark
     

    Carl

    (310) 963-4788
    carl@carlandarda.com
    • Sell
    • Blog
    • Contact
    • Arda Clark(310) 650-0960
      arda@carlandarda.com
      Copy Email
    • Carl(310) 963-4788
      carl@carlandarda.com
      Copy Email
    • Beach City Brokers
      1716 South Catalina Avenue
      Redondo Beach, CA 90277
      3106500960
      arda@carlandarda.com

    About

    • Home
    • About
    • Contact

    Search

    • Search Properties
    Carl and Arda Clark - Footer Logo
      • Privacy
      • Terms
      • DMCA
      • Accessibility
      • Fair Housing
      © 2025 Beach City Brokers. All rights reserved.
      Website built by CloseHack.
      California Regional Multiple Listing Service

      The multiple listing data appearing on this website, or contained in reports produced therefrom, is owned and copyrighted by California Regional Multiple Listing Service, Inc. ("CRMLS") and is protected by all applicable copyright laws. Information provided is for viewer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties the viewer may be interested in purchasing. All listing data, including but not limited to square footage and lot size is believed to be accurate, but the listing Agent, listing Broker and CRMLS and its affiliates do not warrant or guarantee such accuracy. The viewer should independently verify the listed data prior to making any decisions based on such information by personal inspection and/or contacting a real estate professional.

      Based on information from California Regional Multiple Listing Service, Inc. as of the most recent time synced and /or other sources. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information

      Permanent Versus Temporary Mortgage Buydowns

      Permanent Versus Temporary Mortgage Buydowns

      Published 12/11/2023 | Posted by Arda Clark

      A mortgage buydown is an option to pay an extra upfront fee to reduce your mortgage interest rate. They come in two types: permanent or temporary. Permanent mortgage buydowns last for the entire length of the loan, resulting in decreased interest expenses at the cost of an upfront fee. Temporary buydowns last for a specified length of time, and typically are gradually phased out over the course of the buydown period. However, it’s possible for the upfront fee of a temporary buydown to exceed the interest reduction.

      The decision of whether to take a permanent buydown or no buydown is relatively simple and only depends on whether you think you can afford the upfront payment. The decision of whether to take a temporary buydown or not is more complex. At first glance, those with a higher upfront fee than interest reduction can seem like a scam — paying more now in order to pay more over the course of the loan? Seems like a terrible idea. And it would be, if it were you as the buyer paying the upfront payment. However, with temporary buydowns, unlike with permanent buydowns, it’s most often something that the buyer requests that the seller pay for as part of the negotiation process. This way, the buyer gets to pay less in mortgage interest for a short time, and the seller pays extra to guarantee that the sale goes through. And if the upfront fee is less than the interest reduction, the buyer also has the option to pay for a temporary buydown themselves if the seller doesn’t want to.

      Photo by Igal Ness on Unsplash

      Related Articles

      Keep reading other bits of knowledge from our team.

        Request Info

        Have a question about this article or want to learn more?