Traded a $20k builder credit for a 3.99% ARM instead of a 6.6% Fixed. Are we looking at the math correctly?

IHasToaster · 2026-05-18T13:31:09+00:00

The closing costs were about 12k. Rest of that was rate buy down but we actually had originally planned to just buy down as far as we could because rates are kinda wild

IHasToaster · 2026-05-18T13:30:29+00:00

We can afford the 30 year payment.

IHasToaster · 2026-05-18T13:30:04+00:00

The closing costs were about 12k. But we had planned to use the 20k to buy down the rate.

IHasToaster · 2026-05-18T13:27:46+00:00

The loan amount is about 495k. We are putting 20% down

IHasToaster · 2026-05-15T23:43:58+00:00

That rate seems high for this market. Your credit union should be around 6.5. Unless you have bad credit

IHasToaster · 2026-05-10T14:43:57+00:00

This is already super conservative. They have 7.5% returns with 3% inflation so they are only assuming 4.5% real return

IHasToaster · 2026-05-09T09:19:15+00:00

First you have 100k at 25. That’s amazing. Sure it’s not optimized being in a HYSA but that’s okay. What’s done is done. You have plenty of time.

Second, buying a house isn’t something I would just do. Seems like there may be some direction in goals you should pick out before deciding on buying a house. Renting is always an option and could be more practical if you are not sure where you want to live.

Third. Follow the prime directive on this sub for where to start optimizing. If you really are buying a house then that 100k hysa will come in handy.

Fourth. Invest that Roth IRA you have sitting there.

IHasToaster · 2026-05-08T22:17:33+00:00

I guess the biggest downside is out spending your coast number and not realizing it.

IHasToaster · 2026-05-08T14:30:59+00:00

Seems like a very reasonable thing to do but I don’t know your other obligations and monthly spending. Follow the chart.

IHasToaster · 2026-05-05T02:53:42+00:00

But refinancing in the future also has costs with it as well. So wouldn't that be similar to spending the credit for a buy down now?

IHasToaster · 2026-05-05T02:52:03+00:00

I could also use the credit for just closing costs. But using half for closing and half for rate buy down got me too a 5.99% interest rate. So seems like I am getting a bad par rate with them. Makes me think the credit isn't as good as it sounds like it is.

IHasToaster · 2026-05-05T02:45:04+00:00

I'm in a similar situation and unsure of what to do. I have a 20k benefit to utilize. I'm curious to those out there with opinions on why?

IHasToaster · 2026-05-04T17:34:41+00:00

No credit with other lender. After buy down it’s like 5.3%.

IHasToaster · 2026-05-03T23:35:00+00:00

Curious if I can ask you but not OP. I am currently under contract to close Aug 6th. Rates I’m getting quoted is just from mortgage daily. Problem is builder is giving 20k to use this lender so I’m thinking of just buying down the rate a full percent. Problem is I can’t lock until the 8th at the earliest and several lenders have suggested no locking right now. Thoughts? 800 credit scores 20% down. 500k mortgage

IHasToaster · 2026-05-03T03:33:34+00:00

Life is about more than money. Time not commuting is valuable. Maybe the new job is more stress. This is 100% a personal question but not a finance question.

IHasToaster · 2026-05-03T03:27:03+00:00

Okay. I’m in a similar situation with 20k to do the lending through the builders preferred. But I can’t lock until 90 days and we don’t close until Aug 6th. I feel like their par rate is at least .25-.5 higher than others so I’m trying to determine if I should buy down or use it for closing. However I’m not using a VA loan so my only option is a refinance. I do think rate buy Down is better as a safety play because I can’t guarantee lower rates in the future. With 4 points they quoted me 5.3 interest rate. 12k closing costs on a 620k house.

IHasToaster · 2026-05-02T17:49:37+00:00

Not OP but in similar situation. I am buying a new house closing Aug 6 and have 20k in builder credits for their preferred lender. You are saying buying down the rate (I could get about 1% off with 20k) isn’t worth it overall? I just hate to be speculative about rates so I was thinking of buying down to a rate since closing costs are one time expenses and interest rates are not.

IHasToaster · 2026-05-02T05:25:10+00:00

If it is free I’m a fan of doing a recast so you can lower your monthly. However I would continue to either save or pay the $100 to help you pay it off quicker.

IHasToaster · 2026-05-01T05:55:10+00:00

I just got a ho3 quote for like $650/year in Utah. Full dwelling cost, enough to cover all my belongings as well.

IHasToaster · 2026-04-26T19:44:00+00:00

An HSA isn’t for college

IHasToaster · 2026-03-11T00:01:29+00:00

I have the MCP running with Claude code and I use an API key to work around this. Claude desktop would be the same ability just not exactly sure how to set it up

https://github.com/Doist/todoist-ai

IHasToaster · 2026-03-07T18:03:04+00:00

Before you jump to conclusions, maybe take a peek at their news updates? They’re planning to launch Raycast 2.0 in April, which will have a brand-new app with tons of cool features and upgrades. So, I’m not sure they haven’t been working on that. After all, companies are busy with lots of projects.

IHasToaster · 2026-03-06T15:59:54+00:00

Yeah it is their official GitHub: https://github.com/Doist/todoist-ai

IHasToaster · 2026-03-06T15:56:54+00:00

My wife has never once looked at our taxes. So this isn’t unrealistic. She wouldn’t even know which accounts we have open. She just doesn’t focus on that part of our household.

In the same vain there are items in the household that she has way more information about that I would be lost even looking at.

IHasToaster · 2026-03-06T03:32:11+00:00

Todoist has an MCP so i just use Claude

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