How to Buy Down Your Interest Rate with the Worker Advantage Program

by Ryan Rose

A lower interest rate means a lower monthly payment for the entire life of your loan. Most buyers assume they are locked into whatever rate the market offers, but the Worker Advantage Program gives essential workers a powerful alternative. You can use part or all of the $20,000 grant to purchase discount points and reduce your rate before you even make your first payment.

What Is a Rate Buydown?

A rate buydown means paying an upfront fee to your lender in exchange for a permanently lower interest rate. Each "discount point" costs 1% of your loan amount and typically reduces your rate by about 0.25%. On a $350,000 loan, one point costs $3,500. Two points cost $7,000.

The Worker Advantage Program specifically allows the $20,000 grant to be used toward 2% or 4% discount points. That flexibility is rare among assistance programs and can translate to significant savings over time.

Running the Numbers

Consider a $350,000 loan at 6.5% interest over 30 years. Your monthly principal and interest payment would be roughly $2,212. Purchasing two discount points for $7,000 could lower your rate to around 6.0%, bringing that payment down to about $2,098. That saves $114 every month, which adds up to over $41,000 in interest over the full loan term.

You would still have $13,000 remaining from the grant to put toward your down payment or closing costs. The grant itself carries 0% interest and requires no monthly payments, so there is no added cost for using it this way.

When a Buydown Makes Sense

Rate buydowns work best when you plan to stay in your home for several years. The savings from a lower rate need time to exceed the upfront cost of the points. For most essential workers putting down roots in Las Vegas, the math works out favorably within three to five years.

If you are considering a shorter stay, directing the full $20,000 toward your down payment or closing costs might make more sense. Your Home Is Possible certified lender can model both scenarios for you.

Local Insight from Ryan Rose

Most of the essential workers I help in Las Vegas are buying their long term home. They plan to stay for a decade or more, which makes a rate buydown one of the smartest uses of the Worker Advantage grant. I always recommend running side by side comparisons with your lender so you can see exactly how much a buydown saves versus applying the full amount to your down payment. Every situation is different, and I am happy to help you think through the options. Get in touch here or find out what your current home is worth.