Interest rates have gone nowhere but UP for the past 3+ weeks. For home buyers still shopping around for the best deal, it’s like watching a nightmare unfold. Remember those 3.5% 30-year fixed rates? They’re gone!

Rates went to 3.625%, then 3.75%, then skipped right over 3.875% and landed on 4%, now up to 4.125%.

In some scenarios, it makes sense to buy down your rate to 3.75%, but you must do the math first. If the buy down is too expensive, reject it and take the 4.125%.

How to Check Your Buy Down Option

Look at the principal-and-interest payment using both interest rates.

Subtract to get the monthly savings.

Divide the monthly savings into the cost of the buy down.

This is the number of months it will take to break even. If you’ll break even in two years or less, I think it makes sense. If it’s taking…