Buydown Calculator

Did you know that you can temporarily buy down interest rates when purchasing a home? Well, you can! See how much you could potentially save by using this buydown calculator. (The results are estimates based on a 30 year fixed mortgage) What is a buydown? A buydown is a way to lower your monthly mortgage payments, making your home more affordable. There are different types of buydowns, like 3/2/1 or 2/1. In a 3/2/1 buydown, your interest rate is reduced by 3% the first year, 2% the second year, and 1% the third year. In a 2/1 buydown, your rate is lowered by 2% the first year and 1% the second year. The cost of a buydown can be paid by the lender, builder, real estate developer, or even yourself. It can either be built into your loan and paid back over time, or paid upfront by the sponsor without you having to repay it. Think about a buydown if you want to lower your monthly mortgage payments and make your home more affordable.