Rate Buydown Calculator
Builders often offer to "buy down" your interest rate as an incentive. This calculator shows the real dollar value.
Loan & buydown
Enter your loan and choose a buydown structure.
Result
Estimated payment schedule and total value.
$9,215 value
Total savings over the temporary buydown period
Year 14.750%$2,087/mo
Year 25.750%$2,334/mo
Year 3-306.750%$2,594/mo
Estimates only. Actual buydown cost is set by the lender and depends on market pricing.
Don't Just Look at the Payment.
Imagine a builder offers:
“3.99% for the first year.”
That sounds great. But what happens in year two? And year three? What is the permanent rate? How much is the builder contributing toward the buydown? What would your payment be without it? And how does the incentive compare with other options? Those are the numbers worth understanding.
Go deeper