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See what a temporary buydown could do for your payment.
Compare 3-2-1, 2-1 and other temporary buydown options and see how your payment could change during the first few years of your loan.
Buydown structure
Payment view
Full note-rate payment
$4,367.41/ mo
- Note rate
- 6.500%
- Principal & interest
- $3,792.41
- Taxes, insurance & HOA
- $575.00
- Loan amount
- $600,000
Your payment returns to this full note-rate amount in year 3 and stays there for the rest of the 30-year term.
Year 1 · 4.500%
Save $752.30/mo
$3,615.11/ mo
Reduced principal & interest plus your estimated taxes, insurance and HOA. That's $9,028 back in your pocket this year.
Year 2 · 5.500%
Save $385.67/mo
$3,981.73/ mo
Reduced principal & interest plus your estimated taxes, insurance and HOA. That's $4,628 back in your pocket this year.
Total buydown cost
$13,656
The total subsidy needed to fund this 2-1 buydown — the sum of every monthly reduction, typically deposited into escrow at closing.
How a temporary buydown works
A temporary buydown generally reduces the borrower's payment for a limited period — usually the first one to three years — by applying funds to make up the difference between the reduced payment and the full note-rate payment. It's commonly funded through eligible seller, builder, lender or other permitted contributions, depending on the loan program and the transaction. When the buydown period ends, the payment steps up to the full note-rate amount for the remainder of the term.
You'll typically qualify at the full note rate, not the bought-down rate — so a buydown eases the early years, it isn't a way around qualifying.
Market data, not a rate quote. These results use the numbers you enter, including the rate assumption. Nothing on this page is a quote, an APR, or a commitment to lend, and no rate here is quoted by April Ramker. Your actual rate and APR depend on credit, income and assets, loan amount, property type, occupancy, loan-to-value, program, lock period, points and market conditions. Ask me for real numbers on your file.
Estimates only, for education. Results are not a rate quote, a loan approval or a commitment to lend. Every figure comes from assumptions you entered — including the note rate. Buydown availability, funding sources and contribution limits vary by loan program, occupancy and transaction type.