Mortgage Buydown Calculator
Compare different buydown options and calculate your potential savings
Buydown Calculator
Buydown Cost
Calculator Disclaimer
This calculator provides estimates based on the information you enter and current market conditions. Actual buydown costs, savings, and eligibility may vary based on:
- Your credit score and history
- Loan program requirements
- Property type and location
- Current market rates
- Lender policies and fees
- Seller concessions available
Please consult with one of our mortgage experts for personalized buydown options and accurate terms based on your specific situation. The results shown are for informational purposes only and do not constitute a commitment to lend.
Understanding Mortgage Buydowns
A mortgage buydown is a financing technique where you pay extra points upfront to reduce your interest rate for the initial years of your mortgage. This can help make your monthly payments more affordable during the early years of homeownership.
Types of Buydowns
2-1 Buydown
Interest rate is reduced by 2% in year 1 and 1% in year 2, then returns to the note rate.
3-2-1 Buydown
Rate reduces by 3% first year, 2% second year, and 1% third year.
Benefits & Considerations
Benefits
- Lower initial monthly payments
- Easier qualification for homebuyers
- Time to adjust to homeownership costs
- Potential for future rate decreases
- Can be paid by seller or builder
Considerations
- Upfront cost of buying down the rate
- Payment increases after buydown period
- May not be best if planning to move soon
- Consider future income expectations
Ready to Lower Your Rate?
Our mortgage experts can help you understand your buydown options and find the best solution for your needs.
Call Us
(855) 699-1424