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Temporary Buydown Calculator
3-2-1, 2-1 and 1-0 — the payment in each year and what the buydown costs
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yrs
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A temporary buydown is normally paid by the seller or the builder, not by you. Enter what has been offered and the calculator shows whether it covers the full cost.
Your payment in year 1
$0
Total buydown cost$0
Covered by the credit$0
Left for you to cover$0
Payment once the buydown ends$0
A temporary buydown reduces your payments; the rate in your loan agreement does not change. You are approved on the full payment at the agreement rate, not on the reduced one. The funds are held in a separate account and used month by month, and if you pay the loan off early the unused balance usually reduces the payoff amount.
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Estimates only, for principal and interest. They do not include property taxes, insurance, HOA dues or mortgage insurance, and they are not a loan offer or a commitment to lend. Your actual structure depends on the loan program, the seller contribution limits and the terms you negotiate.