Short answer: if you are financing a home in Las Vegas right now, a seller-paid rate buydown usually saves you more over time than the same dollar amount taken off the price, especially if you plan to keep the loan for several years. But the right choice depends on how long you plan to keep the loan, how much cash the seller actually has room to give, and whether you would rather have a lower payment today or a lower balance for the life of the loan.
I get this question on almost every purchase contract right now. Rates have held in the mid 6s for months, and buyers are naturally asking their agent (me) to negotiate something on the interest rate instead of, or in addition to, the sale price. Here is how to think about it.
What is a seller-paid rate buydown?
A rate buydown is money paid up front, by the seller, the builder, or you, to lower the interest rate on your mortgage. When the seller pays for it as a concession, the funds get credited at closing and either deposited into an escrow style account or applied directly to discount points, depending on which type of buydown you choose.
Temporary buydown vs. permanent buydown: what is the difference?
There are two different tools here, and they solve different problems.
- Temporary buydown (2-1): Your rate is reduced by 2 percentage points in year one and 1 percentage point in year two, then returns to the full note rate in year three and beyond. This lowers your payment while you settle into the home, not for the life of the loan.
- Permanent buydown (discount points): You pay a percentage of the loan amount up front, one point equals 1% of the loan, to permanently lower the rate, typically by roughly 0.25 percentage point per point, though this varies by lender and pricing that week.
| Feature | Temporary (2-1) Buydown | Permanent Buydown (Points) |
|---|---|---|
| How long the reduction lasts | 2 years, then reverts to note rate | Life of the loan |
| Best for | Buyers who expect income to grow or plan to refinance soon | Buyers planning to stay long term or keep the loan as is |
| Who typically pays | Seller or builder concession | Seller concession, or buyer out of pocket |
| Risk | Payment jumps in year 3 if income has not kept pace | No payment shock, but higher upfront cost |
How much does a buydown actually cost on a Las Vegas home right now?
As of August 20, 2026, Freddie Mac’s Primary Mortgage Market Survey put the average 30-year fixed rate at 6.65%. On a home at the Las Vegas countywide median of $480,000 (Las Vegas Realtors, July 2026) with 10% down, that is roughly a $432,000 loan. Two discount points on that loan would cost about $8,640 and could bring the rate down by somewhere around half a percentage point, worth checking against your specific lender’s pricing since it moves week to week. A 2-1 temporary buydown on a similar loan amount typically runs in a comparable range, funded by the seller and held to subsidize your payment for the first two years.
Buydown or price cut, which should you actually ask for?
Run the math before you decide what to ask for:
- If you are keeping the loan 7 or more years: a permanent buydown usually wins, since the monthly savings compound for the life of the loan instead of resetting after year two.
- If you expect to refinance or sell within 2 to 3 years: a temporary buydown, or simply a price reduction, is often the better ask, since you will not be around long enough to benefit from a permanently lower rate.
- If the seller has a hard cap on concessions: compare the two side by side in actual dollars with your loan officer before you counter, a buydown quote from your lender takes about 10 minutes and removes the guesswork.
One more thing worth knowing: a buydown can be an easier ask than a straight price cut in a market like this one, because it does not touch the comparable sale price for the seller’s neighborhood the way a lower closing price does. Some sellers who would fight a $10,000 price reduction will agree to a $10,000 buydown credit without much resistance, for exactly that reason.
For more on how national rate moves are actually showing up locally, I broke that down in National Home Prices Keep Rising, While Las Vegas Pulls Back.
Thinking about making an offer? Before you write it, let’s run the numbers. Text me your loan details and I’ll compare a rate buydown versus a price reduction so you know which could work better for your situation.
Geoff Zahler | Broker/Owner, Zahler Properties
775-351-4699 | [email protected] | zahlerproperties.com