New Construction Buyers: Are You Overpaying for That “Incentive” Rate?

In this episode of The Brutally Honest Loan Officers Podcast, we break down what builders don’t always explain clearly: • Why new construction homes are often priced higher than resale • Why builders avoid lowering prices • How rate buydowns actually work • The real math behind “builder incentives” • When a higher price can still mean a lower monthly payment • The hidden risk if you sell in 2–3 years • Why long-term buyers benefit most from new construction Right now, many builders are offering: 4.99%–5.25% interest rates Closing cost credits Design center upgrades Appliance packages Lot premium waivers But here’s the key question: Are you saving money… or just shifting where you pay it?