A mortgage rate buydown allows borrowers to lower their interest rate through an upfront payment at closing. Depending on the transaction, that cost may be covered by the buyer, a seller concession, or a builder incentive. The lower rate can reduce monthly mortgage payments and improve affordability.

There are two common approaches. A permanent buydown lowers the interest rate for the life of the loan. A temporary buydown reduces the rate for the first one to three years before returning to the note rate. For example, a 2-1 buydown typically lowers the rate by 2 percentage points during the first year and 1 percentage point during the second year.

As buyers continue looking for creative financing strategies in 2026, rate buydowns remain a popular way to manage costs.

Every financial situation is different, so it is important to compare the upfront cost with the potential long-term savings. Your Berkshire Hathaway HomeServices network agent can help you explore available opportunities and connect you with trusted lending professionals to evaluate your options.

A low appraisal can catch buyers and sellers off guard, but it does not have to derail a transaction. If a home appraises for less than the agreed purchase price, the lender will typically base the loan amount on the appraised value rather than the contract price, which can create a gap between what the lender is willing to finance and what the buyer agreed to pay.

In many cases, buyers and sellers return to the negotiating table. A seller may reduce the price, a buyer may contribute additional cash to cover the difference, or both parties may find a middle ground. Sometimes an appraisal review or a second appraisal may be appropriate if there are concerns there.

As conditions continue to vary across regions in 2026, understanding local pricing trends is especially important. Staying informed about recent comparable sales can help buyers make competitive, informed offers.

If you're preparing to buy or sell, your Berkshire Hathaway HomeServices network agent can help you navigate appraisal challenges and keep the transaction moving forward with confidence.

Closing costs are the fees and expenses associated with finalizing a real estate transaction. They typically include lender fees, title services, escrow charges, prepaid property taxes, homeowner’s insurance, recording fees, and other transaction-related expenses.

Both buyers and sellers generally pay closing costs, although the specific amounts vary by market, purchase agreement, financing terms, and local customs. Buyers often cover many of the loan and settlement-related expenses, while sellers may be responsible for agent compensation, transfer taxes in certain locations, and other seller obligations. Negotiation can also play a role. In some transactions, sellers agree to contribute toward a buyer's closing costs as an incentive.

Because closing costs are usually due at settlement, planning ahead is important. Many buyers focus primarily on the down payment and underestimate the additional funds needed to complete the purchase.

Before closing day arrives, ask your Berkshire Hathaway HomeServices network agent for an estimate of potential costs and strategies that may help you prepare for a smooth transaction.