u/KeyProgress3963

Planning to buy a new‑construction home in Arizona and trying to make sense of the mortgage options. Sale price – $680k, builder incentives – $35k, and I’m putting 10% down.

 The lender gave three 30‑year conventional loan options:

Option 1 – No rate buydown

• Use the full $35k incentive toward closing costs + sale price
• Rate: 6.75%
• PITI + HOA: ~$4,400/mo

Option 2 – Full rate buydown

• Use all $35k toward closing costs + rate buydown (might still need ~$2k out of pocket at closing)
• Rate: 4.99%
• PITI + HOA: ~$3,700/mo

Option 3 – Partial rate buydown

• Use ~90% of incentives for rate buydown, remaining 10% for closing costs (more cash needed at closing)
• Rate: 5.625%
• PITI + HOA: ~$3,900/mo

HHI - $7200 (after taxes, car loan, 401k and HSA)

Can you please help me choose the right option?