Builder buydowns vary deal to deal, but two structures dominate: the temporary 2-1 buydown and a permanent buydown funded through a forward commitment. - The 2-1 temporary buydown cuts the rate two points in year one and one point in year two, then returns to the note rate. - The forward commitment works at scale. When a builder knows a block of homes will deliver in a given month, its lender prices a forward rate lock (say a 120-day commitment) against the pool's average credit score and average loan-to-value, then funds those loans at roughly 98% of value. The builder covers about 2% of the loan amount to secure the lower permanent rate. With healthy new-construction margins, builders can usually absorb that cost, because moving inventory is worth more to them than the concession. What any given builder offers on amount and term is negotiable and varies by builder, community, and timing, so the quote you get is specific to that deal. One caution as you evaluate it: a builder incentive is given in lieu of a lower price, so it is your own money being repositioned, and it should be judged that way rather than treated as free. The durable move is to price the builder's buydown against an outside loan option so you can see its true cost and value, instead of assuming the in-house incentive is automatically the best deal. That side-by-side is exactly what we walk through in a free Roadmap call.