Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
Temporary buydown calculator for loan officers.
A 3-2-1, 2-1, 1-1 or 1-0 buydown: the rate and payment each year, what the borrower saves, the subsidy it takes to fund it, and what's left of the credit offered.
Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
APR counts every closing cost and point as a finance charge unless the lender's fees and points are entered separately.
APR worked out by the actuarial method: 12 CFR 1026.22(a)(1) and Appendix J · Read October 1, 2026
Estimates from the inputs shown. Not a Loan Estimate or an offer to lend.
Inputs stay in this browser. Usage counts record the tool used and a few rounded figures, such as loan purpose, state and loan-amount band. No names, addresses or exact amounts.
Questions
How is the subsidy worked out?
Each year's payment is principal and interest on the full loan amount at that year's rate, over the full term. The monthly saving is the note-rate payment less that payment. The subsidy is the saving for every month of the buydown, added up: twelve months at each step.
Payments are principal and interest only. Taxes, insurance and dues don't change with a buydown.
What happens to credit that's left over?
Credit offered beyond the subsidy is shown as unused, and nothing more. It doesn't lower cash to close and isn't spent anywhere else here. Whether it can go toward closing costs instead depends on the contract and the program's limits.
How is the APR worked out?
This is an estimate worked out here, on the note rate for the full term, as if there were no buydown. The buydown lowers the early payments, so leaving it out gives the higher APR. When the borrower pays for the buydown, its cost is a finance charge: add it to the closing costs and points. Every closing cost and point counts as a finance charge unless you enter the lender's fees and points; then only that amount counts.
What does it leave out?
Which rate the borrower qualifies at, and whether the program allows the buydown: check the investor's guide. Permanent buydowns with discount points. Adjustable rates. How a seller-paid buydown counts toward the program's limit on seller contributions: use Seller Contributions.
These are estimates from the inputs shown, not a Loan Estimate or an offer to lend.