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Temporary buydown calculator

Compare a 3-2-1, 2-1, or 1-0 buydown. See the payment path, monthly reduction, and exact subsidy required for the temporary period.

The mortgage rate does not change. A subsidy covers part of the early scheduled payment. The borrower must qualify using the lender's required payment.

Estimated subsidy$9,103.68View details ↓

Your scenario

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Buydown structure

3-2-1 2-1 1-0

Home price or valuePurchase price or appraised-value basis. Loan-to-valuePercentage of the value being financed. Financed upfront feeAdd any FHA, VA, USDA, or other fee financed into the note. Mortgage interest rateUse the rate from the lender's quote. Loan termWhole-year, fully amortizing term.

Optional housing costs

Taxes and insurance are annual. HOA and mortgage insurance are monthly. Enter zero to exclude a cost.

Property taxes / yearAnnual amount. Home insurance / yearAnnual amount. HOA dues / monthMonthly amount. PMI or MI / monthMonthly amount when applicable.

Estimated subsidy required

$9,103.68

Estimate ready

Estimated note$400,000.00

Full note-rate payment$3,428.27

Down payment / equity$100,000.00

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Temporary buydown payment schedule
Period	Payment-equivalent rate	Monthly payment	Monthly reduction	Subsidy

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Planning estimate only. Payment and subsidy use the estimated note, including any financed upfront fee entered above. A temporary buydown does not change the note rate or loan terms. Funding, qualification, seller/lender contribution limits, eligibility, and final figures must be verified for the specific transaction.

Read the result correctly

The early payment is lower. The loan rate is not.

3-2-1 buydownThe payment steps up over three years, then returns to the full note-rate payment in year four.

2-1 buydownThe payment-equivalent rate is two points lower in year one and one point lower in year two.

Subsidy accountFunds set aside at closing cover the difference between the temporary payment and the scheduled note-rate payment.