Mortgage rate buydown calculator
Compare permanent and temporary buydowns.
Permanent buydown saves
$132a month vs $2,594 at 6.75% · Pays for itself in 61 months (5.1 years)
Permanent (2 pts)
- Upfront cost
- $8,000
- Year 1
- $2,463
- Year 2
- $2,463
- Year 3
- $2,463
- After buydown
- $2,463
- Saves / mo
- $132
- Break-even
- 61 mo
- Buyer saves over 7 yr
- $11,048
2-1 temporary
- Upfront cost
- $9,215
- Year 1
- $2,087
- Year 2
- $2,334
- Year 3
- $2,594
- After buydown
- $2,594
- Saves / moyear 1
- $508
- Buyer saves over 7 yr
- $9,215
3-2-1 temporary
- Upfront cost
- $18,118
- Year 1
- $1,852
- Year 2
- $2,087
- Year 3
- $2,334
- After buydown
- $2,594
- Saves / moyear 1
- $742
- Buyer saves over 7 yr
- $18,118
1-0 temporary
- Upfront cost
- $3,121
- Year 1
- $2,334
- Year 2
- $2,594
- Year 3
- $2,594
- After buydown
- $2,594
- Saves / moyear 1
- $260
- Buyer saves over 7 yr
- $3,121
Without a buydown: $2,594/mo principal and interest. Seller pays (concession). Lenders usually qualify temporary buydowns at the note rate.
Your name, photo and phone number go on it.
Questions
Who pays for a buydown?+
Often the seller or builder as a concession. The calculator shows the cost either way.