Buydown calculator
Temporary rate buydowns
A seller or lender credit can lower your rate for the first years of the loan. Here is what the stepped payments and the total subsidy look like.
$500,000
6.75%
30
Buydown structure
Total subsidy required
$11,519
- Year 1 at 4.750%
- $2,608 (save $635/mo)
- Year 2 at 5.750%
- $2,918 (save $325/mo)
- Year 3+ at 6.750%
- $3,243
The subsidy is held in escrow and applied monthly. If you refinance early, unused funds are typically credited back to your loan.