A lower payment now, and what it costs to buy.
A temporary buydown drops your rate for the first years of the loan. See the payment it buys, and the money it takes to fund.
Pick the buydown, then price it.
Choose the structure, describe the loan underneath it, and the schedule below moves as you type — down to the payment you end on.
What the buydown buys you:
-
Start at $1,264.81 a month instead of the full payment
-
Keep $533.84 in your pocket every month at first
-
Fund the whole thing at closing for $13,061 up front
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Settle at $1,798.65 a month once the buydown runs out
This is what has to sit in the subsidy account at closing. A seller, a builder or a lender credit usually funds it.
An estimate built from what you entered — not a quote or an approval.
Ask who can fund thisA starting assumption, not an offer. Your rate is priced to your file.
Every year of the loan, one row at a time.
What you pay while the buydown lasts, what you would have paid without it, and the payment that carries the rest of the term.
| Year | Rate | Full payment | Payment with buydown | Monthly savings | Annual savings |
|---|---|---|---|---|---|
| 1 | 3.000% | $1,798.65 | $1,264.81 | $533.84 | $6,406.07 |
| 2 | 4.000% | $1,798.65 | $1,432.25 | $366.41 | $4,396.87 |
| 3 | 5.000% | $1,798.65 | $1,610.46 | $188.19 | $2,258.24 |
| 4–30 | 6.000% | $1,798.65 | $1,798.65 | — | — |
- Rate
- 3.000%
- Payment with buydown
- $1,264.81
- Full payment
- $1,798.65
- Monthly savings
- $533.84
- Annual savings
- $6,406.07
- Rate
- 4.000%
- Payment with buydown
- $1,432.25
- Full payment
- $1,798.65
- Monthly savings
- $366.41
- Annual savings
- $4,396.87
- Rate
- 5.000%
- Payment with buydown
- $1,610.46
- Full payment
- $1,798.65
- Monthly savings
- $188.19
- Annual savings
- $2,258.24
- Rate
- 6.000%
- Payment with buydown
- $1,798.65
- Full payment
- $1,798.65
- Monthly savings
- —
- Annual savings
- —
$13,061
The buydown is temporary. You qualify at the full payment, and that is what you pay once it ends.
Someone has to fund a buydown. Usually not you.
Sellers, builders and lenders all pay for these, and which one is on the table depends on the deal. A loan officer can tell you.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.