Temporary buydown calculator
A seller-paid buydown drops your rate for the first years of the loan. See the payment, the savings, and the concession it takes to fund it.
Payment breakdown
Buyer savings & seller concession
Total monthly payment
Cumulative savings
Estimates only. Figures are illustrative, are not a loan offer, a commitment to lend, or an advertisement of credit terms. Taxes, insurance, mortgage insurance and HOA dues are entered as estimates and your real numbers will differ. A temporary buydown has to be written into the purchase contract and funded at closing by the seller or builder.
How a temporary buydown works
A temporary buydown lowers the interest rate for the first few years of a mortgage, so the early payments are smaller. The rate is not permanently lower — the full note rate returns on a published schedule.
- 2-1 buydown: The rate is 2% lower in year 1 and 1% lower in year 2, then the full note rate from year 3 onward.
- 3-2-1 buydown: The rate is 3% lower in year 1, 2% lower in year 2 and 1% lower in year 3, then the full rate.
- 1-1-1 buydown: The rate is 1% lower in each of years 1, 2 and 3, then the full note rate from year 4 onward.
- 1-0 buydown: The rate is 1% lower in year 1 only, then the full note rate from year 2 onward.
- Seller concession needed: The buyer's total savings, expressed as a percentage of the purchase price — the concession you need negotiated into the contract.
- Best for: Buyers who expect their income to rise, or a market where sellers and builders are offering concessions to close.
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It takes a few minutes. No credit check to explore your options, and you get straight answers — in English or Vietnamese.
Exploring your options does NOT affect your credit score.