Share

• Share on Facebook
• Share on Instagram
• Share on Pinterest
• Share on X

August 8, 2026

Rate Buydown Explained: How CBH Incentives Can Lower Your Payment

A rate buydown might be the smartest move you’ve never heard of. It uses CBH incentives to reduce your interest rate – either temporarily for the first few years or permanently for the life of your loan – which means a lower monthly payment for you.*

CBH Homes Sales Coach Nick breaks down how buydowns work, how to use your CBH concessions, and how to make the smartest financial move for your situation.

Watch the full video here: Rate Buydown Explained

What Is a Rate Buydown?

A rate buydown is when funds – like CBH incentives – are used to lower your mortgage interest rate. Lower rate, lower monthly payment.

Temporary vs. Permanent Rate Buydown: What’s the Difference?

Temporary buydown: Your rate is lowered in year one and steps up gradually over time. It’s a great fit if you’re expecting income growth in the next few years and also gives you time to refinance later on. The buydown structure means your rate is reduced for a set period, not forever.

Permanent buydown: Locks in a lower rate for the life of your loan.

There’s no one-size-fits-all answer here. Run real numbers with your lender for your situation.

How Can You Use CBH Concessions Beyond a Rate Buydown?

CBH incentives are flexible. You can apply them toward:

• Buying down your interest rate
• Covering closing costs
• Home upgrades like blinds, appliances, landscaping, and fencing

The right choice depends on what kind of buyer you are. Both are smart – it just depends on your priorities.

New Construction Incentives vs. Resale

With a resale home, incentives depend entirely on what the seller or their agent is willing to offer. Sometimes it’s something. Sometimes it’s nothing. With CBH, we have more flexibility and work closely with lender partners to be able to offer incentives. It purely depends on the market if there are any promotions or incentives running, however, this is one reason that buying new construction can actually SAVE you money each month.. It’s one more reason new construction vs. resale is worth comparing before you buy.

Where Should You Start?

Start with your lender. Run real numbers for your situation, understand your options, then shop for the right home at cbhhomes.com. You can even tour on your own schedule with Tour Now.

How Lender Promotions Stretch Your Budget

Here’s the fun part: CBH incentives and lender credits can be applied to lower your monthly payment or upgrade your home with blinds, appliances, landscaping, and more.* Used strategically, promotions can turn your same budget into more home. Want the full breakdown? Read our guide to rate buydowns and CBH incentives.

Frequently Asked Questions

Does a rate buydown lower my payment forever? Only a permanent buydown does. A temporary buydown lowers your rate for the first few years, then steps up according to the buydown structure. Always confirm the details with your lender.

Can CBH incentives cover my closing costs instead? Yes! Incentives can go toward a buydown, closing costs, or home upgrades – whatever fits your goals best.*

Is a buydown better than a price reduction? It depends on your priorities. For many buyers, applying incentives to the rate saves more monthly than an equivalent price cut. Ask your lender to run both scenarios.

Fast, Easy, Fun – Starting with Your Numbers

Thinking about what your dream home looks like? We’re here to help you get there. CBH Homes has been Idaho’s #1 homebuilder since 1992, building new construction homes across the Treasure Valley and Southern Idaho and proudly serving 30,000+ happy homeowners along the way. From Boise to Meridian, Nampa, Eagle, Kuna, Star, Caldwell, Mountain Home, and Twin Falls – we make beautiful possible. 

Getting started can feel like a big step, but that’s what we’re here for – to show you just how possible and fast, easy and fun it is. 🎉

We’re here to help! Get in touch with our expert team.

🏠 Browse move-in ready homes: cbhhomes.com
📲 Tour homes on your schedule with Tour Now
📞 Call or text us: (208) 991-4931

Equal Housing Opportunity. RCE-923.