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Temporary Buydown Calculator

See how a 2-1 or 3-2-1 buydown lowers your payment in the early years.

National average benchmark, not a quote. Edit to your scenario.

Estimated buydown cost

$8,185

Total payment savings during the buydown period

Year 1 payment (4.480%)$1,820 (save $451/mo)
Year 2 payment (5.480%)$2,040 (save $231/mo)
Year 3+ payment (6.48%)$2,271

Estimates only. Your actual numbers depend on your loan, credit, and property. A temporary buydown lowers payments early, then returns to the note rate. The cost is usually paid as a credit at closing by a seller, builder, or lender.

How do I read the buydown result?

Each row shows your estimated payment for that year and how much lower it is than the full payment. The rate steps back up each year until it reaches your note rate. The big number adds up the savings across the buydown years, which is roughly what the buydown costs to set up at closing.

When does a buydown make sense?

A buydown can help when you expect more income soon, or when a seller offers a credit and you'd rather use it to ease early payments than cut the price. It's not free money, so it's worth comparing against a permanent rate reduction or a lower price. I can run those options side by side for you.

Common questions

A temporary buydown lowers your interest rate for the first few years, then returns to the full note rate. A 2-1 buydown cuts the rate by 2% in year one and 1% in year two. A 3-2-1 starts 3% lower and steps down each year. The cost is usually prepaid as a credit at closing.

Often a seller, builder, or lender pays for it as a credit at closing, especially when they want to help a deal come together. You can also pay for it yourself. The total cost roughly equals the payment savings during the buydown years, which this calculator estimates for you.

No. A temporary buydown lowers your payment for a few years, then your rate goes back up to the note rate. Discount points permanently lower your rate for the life of the loan. They solve different problems, and which one fits depends on your plans and budget.

Last updated: June 5, 2026

This calculator is for educational estimates only. It isn't an offer to lend, a quote, or a commitment to make a loan. Your actual numbers depend on your loan, credit, property, and other factors. Rates and programs may change without notice.

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