Temporary rate buy downs are popular for homebuyers aiming to lower their interest rate for the initial years, expecting future rate decreases and a chance to refinance. By paying a lump sum upfront, such as $6,000, and reducing monthly payments by $250, it takes around two years to break even. If you plan to keep the loan for at least two years, it's a sensible decision; otherwise, it may not be advantageous.
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