Temporary Rate Buydown
Compare a 1-0, 1-1, 2-1, or 3-2-1 buydown. The note rate never changes. The borrower pays a lower payment for one to three years; a buydown account covers the difference.
Loan Inputs
Borrower payments during the buydown years are calculated as if the reduced rate applied for the full original term. The loan still amortizes at the note rate. The subsidy is the difference between the full note payment and the borrower payment. Illustration only — not a commitment to lend.
Buydown Result
Enter inputs and click Calculate Buydown.
Note rate / full P&I: —
| Year | Payment | Savings |
|---|
| Cost of buydown | — |
