Data compiled Oct 30, 2026 · public sources only
How builder rate buydowns work in the Triangle
Many Triangle builders advertise mortgage rates well below the market. Here is how those offers work and what to check, using the offers we have sourced.
The three common types
- Temporary buydown (e.g. 2/1). The rate is lower for the first one or two years, then steps up to the note rate for the rest of the loan. The builder prepays the difference.
- Permanent / fixed special rate. The builder pays points to lower the rate for the full term. Check the APR, which includes those costs.
- ARM teaser. A low fixed rate for 5 or 7 years, then it adjusts within stated caps.
Advertised rate offers right now (10)
| Builder | Rate | Type / fine print | Builder lender required | |
|---|---|---|---|---|
| D.R. Horton | 2.99% | 2/1 temporary buydown (2.99% yr1, 3.99% yr2, 4.99% yrs 3–30) | Yes | source |
| D.R. Horton | 4.99% | Fixed (special rate); conventional 5.50% (5.939% APR) | Yes | source |
| D.R. Horton | 3.875% | 5/1 ARM (fixed 5 yrs; caps 1%/1%/5%; max 8.875%) | Yes | source |
| Mattamy Homes | 3.99% | 2/1 temporary buydown (3.99% / 4.99% / 5.99% fixed) | Yes | source |
| Smith Douglas Homes | 4.99% | 5/1 ARM | Yes | source |
| Dream Finders Homes | 2.99% | Not stated (5.959% APR implies temporary/ARM) | not stated | source |
| M/I Homes | 4.875% | 7/6 ARM, 5.749% APR | Yes | source |
| Eastwood Homes | 4.99% | 'As low as' fixed; some rates use 2/1 temporary buydown | Yes | source |
| Davidson Homes | 4.99% | 'As low as' (6.278% APR) | not stated | source |
| Homes by Dickerson | 5.8% | Fixed | Yes | source |
10 of the 13 current offers we track require using the builder's affiliated lender. All offers: builder incentives this month and the incentives table.
What the rate does to the monthly payment
Principal and interest only, on an illustrative $320,000 30-year loan (math, not a quote):
| Scenario | Rate | Monthly P&I |
|---|---|---|
| Market 30-yr fixed (Freddie Mac PMMS, week ending Oct 29, 2026) | 7.24% | $2,181 |
| Example advertised rate 2.99% | 2.99% | $1,347 |
| Example advertised rate 3.875% | 3.875% | $1,505 |
| Example advertised rate 3.99% | 3.99% | $1,526 |
| Example advertised rate 4.875% | 4.875% | $1,693 |
| Example advertised rate 4.99% | 4.99% | $1,716 |
| Example advertised rate 5.8% | 5.8% | $1,878 |
Market rate: Freddie Mac PMMS, The next PMMS release is expected Nov 5, 2026. A temporary buydown's low payment lasts only for the buydown years. Compare the APR and Loan Estimates from at least one outside lender, and ask whether you could take the incentive as a price cut instead. Add taxes, HOA and insurance in the cost calculator.
Questions answered from our data
What is a 2/1 buydown?
The rate is 2 points lower in year 1 and 1 point lower in year 2, then the full note rate applies for the rest of the loan. The seller or builder prepays the difference.
Do I have to use the builder's lender to get the rate?
Often. 10 of 13 current offers we track say the builder's lender is required.
What is the current 30-year mortgage rate?
7.24% per Freddie Mac PMMS for the week ending Oct 29, 2026.
More guides: all guides · incentives this month · best-rated builders · warranties compared · new vs resale · rate buydowns · questions to ask
Compiled from cited public sources as of Oct 30, 2026 and provided as-is; details change often and may be out of date. Verify prices, incentives and warranty terms with the builder and your lender. Not financial or legal advice. See our terms & disclaimer. Corrections: [email protected].