Compare 3-2-1, 2-1, 1.5-0.5, and 1-0 buydown structures. Enter the loan terms to see the seller or builder subsidy cost and the reduced payments for each year.
All payment amounts shown reflect principal and interest (P&I) only. Taxes, insurance, and HOA dues are not included in the buydown calculation. See the details below for estimated taxes, insurance, and HOA. Only the principal and interest portion of the payment is affected by a temporary buydown.
| Year | Eff. Rate | Payment (P&I) | Mo. Savings | Annual Subsidy |
|---|---|---|---|---|
| 1 | 3.875% | $2,944.86 | $1,169.16 | $14,030 |
| 2 | 4.875% | $3,314.17 | $799.85 | $9,598 |
| 3 | 5.875% | $3,704.51 | $409.51 | $4,914 |
After Year 3, buyer reverts to the note rate of 6.875% with a monthly payment of $4,114.02 (P&I) for the remainder of the loan term.
| Year | Eff. Rate | Payment (P&I) | Mo. Savings | Annual Subsidy |
|---|---|---|---|---|
| 1 | 4.875% | $3,314.17 | $799.85 | $9,598 |
| 2 | 5.875% | $3,704.51 | $409.51 | $4,914 |
After Year 2, buyer reverts to the note rate of 6.875% with a monthly payment of $4,114.02 (P&I) for the remainder of the loan term.
| Year | Eff. Rate | Payment (P&I) | Mo. Savings | Annual Subsidy |
|---|---|---|---|---|
| 1 | 5.375% | $3,506.82 | $607.20 | $7,286 |
| 2 | 6.375% | $3,906.99 | $207.03 | $2,484 |
After Year 2, buyer reverts to the note rate of 6.875% with a monthly payment of $4,114.02 (P&I) for the remainder of the loan term.
| Year | Eff. Rate | Payment (P&I) | Mo. Savings | Annual Subsidy |
|---|---|---|---|---|
| 1 | 5.875% | $3,704.51 | $409.51 | $4,914 |
After Year 1, buyer reverts to the note rate of 6.875% with a monthly payment of $4,114.02 (P&I) for the remainder of the loan term.
For realtor and partner use only. This tool is intended for real estate professionals and builder partners and is not meant to be shared with consumers. All payments shown are principal and interest (P&I) only and do not include property taxes, homeowners insurance, mortgage insurance, or HOA dues. See the PITI details below for estimated taxes, insurance, and HOA. Only the principal and interest portion is affected by a temporary buydown. This calculator provides estimates for illustrative purposes only and is not a commitment to lend. Actual rates, payments, and buydown costs are subject to credit approval, program guidelines, and market conditions. Temporary buydown funds are typically paid by the seller, builder, or other interested party into an escrow account. Contact America First Mortgage for a personalized quote. Equal Housing Lender · Company NMLS #2564858.