Mortgage Buydown Calculator

A temporary buydown holds the mortgage payment down for the first year or three out of an escrow account the seller usually funds. Enter the loan amount, the note rate, the term and whether it is a 1-0, a 2-1 or a 3-2-1, and this returns the payment in each bought-down year, the money that has to go into escrow, and what the payment climbs to when the subsidy runs out. A second mode works backwards from a credit the seller has already offered and says which structure it actually pays for. The note rate itself never changes, and paying points for a permanent rate cut is a different sum with its own page on this site.