A builder in Fort Bend County is offering you a rate near 5 percent while a resale home is at 7.18 percent. That sounds like an easy choice, and in the first year it can feel like one. But a builder rate buydown is temporary, and the real question is what the home costs in year three, when the buydown ends.
Builder buydowns can be worth it, if you understand the step up and the tax bill that comes with a new community. They are not worth it if you only look at the first year payment.
Please note: builder offers change weekly, and most are tied to the builder’s preferred lender and a close by date. Verify each offer in writing with the builder before you rely on it.
What is a builder rate buydown?
A temporary rate buydown is a deal where the builder pays to lower your mortgage rate for the first year or two. The most common versions are a 2-1 buydown and a 3-2-1 buydown. In a 2-1 buydown, the rate is cut by 2 points in year one, by 1 point in year two, and then it returns to the full note rate in year three. In a 3-2-1 buydown, the rate is cut by 3 points in year one, by 2 points in year two, by 1 point in year three, and then it returns to the full note rate.
That step up is the part buyers need to see in writing. Ask for the full amortization schedule, not just the year one payment, and ask what your payment is in each year. A buydown that saves you money in year one can still be the wrong choice if you cannot afford the payment in year three.
Builders also offer closing cost credits and design center allowances. A credit that pays your closing costs does not lower your monthly payment. A buydown does, for a while.
How common are builder incentives in late 2026?
Very common. The National Association of Home Builders reported in October 2026, via local reporting, that 65 percent of builders were using sales incentives and 43 percent had cut prices, the highest share since 2020. Treat those figures as secondary, reported figures.
In Houston in 2026, most major builders offered temporary buydowns, closing cost credits, and design center allowances, according to secondary reporting. Spring 2026 offers reported by HAR included fixed rates of 4.99 percent to 5.50 percent via builder affiliated lenders, plus $10,000 to $25,000 in credits on select homes.
A November 1, 2026, list for Cypress reported M/I Homes offering up to $75,000 in flex cash, Perry Homes up to $55,000, Chesmar 4.999 percent on a 30 year fixed FHA or VA loan, and Toll Brothers 5.49 percent, most requiring the builder’s preferred lender and a close by December 31, 2026. Those are Cypress offers, not Fort Bend offers.
What is MUD tax, and why does it change the comparison?
Many new Fort Bend County communities carry a Municipal Utility District tax, known as MUD tax, on top of county, school district, and city tax. It pays for water, sewer, and drainage infrastructure, and it does not go away when the buydown ends.
Reported MUD tax rates in Fort Bend County range from $0.12 to $1.50 per $100 of value across about 180 districts, according to a third party blog. Confirm the exact MUD tax for the specific home before you buy. A new home with a low rate in year one and a high MUD tax can cost more per month than a resale home with a higher rate and a lower tax bill.
How do I compare a new home with a resale home fairly?
Use the same three years for both homes. Get the builder’s written buydown schedule, get the resale home’s payment at today’s rate, and add the total cost of each home over three years.
A new home can win, especially if you plan to stay long term. A resale home can also win, especially in an established neighborhood with lower taxes.
Frequently Asked Questions
What is a 2-1 buydown?
A 2-1 buydown lowers your mortgage rate by 2 points in the first year and by 1 point in the second year, then returns to the full note rate in the third year.
Are builder rate buydowns worth it in Fort Bend County?
They can be, if you can afford the payment after the buydown ends and if the total cost over three years is lower than a comparable resale home. Compare the full three year cost, in writing, before you decide.
Educational information only. This post is not legal, tax, lending, or insurance advice. Builder offers, rates, incentives, and MUD tax rates change frequently. Verify each offer in writing with the builder, and verify rates, program details, and tax rates with a licensed lender and the tax office before you decide.
About the author: Justin Duffield is a Realtor with J. David Properties, Keller Williams Realty Southwest, in Sugar Land, Texas. He has more than 21 years in real estate, has helped more than 400 families buy and sell, and is a Top 10% producing agent in Fort Bend and Harris Counties for more than 11 consecutive years.
Talk with Justin: Justin Duffield, J. David Properties, (832) 771-8700, justin@jdavidproperties.com, jdavidproperties.com. Let your needs be our priority.
Sources: National Association of Home Builders, October 2026, via local reporting; Houston builder incentives, 2026, via secondary reporting; Cypress builder incentives, November 1, 2026; Fort Bend new construction sales, first half 2026, via third party blog.