Mortgage Buydown Calculator

Use our Mortgage Buydown Calculator to see how a temporary buydown lowers your mortgage payment for the first years, and how big the buydown fund has to be.

In a temporary buydown the loan keeps its note rate, but for a set period your payment is worked out as if the rate were lower. The lender still receives the full payment; a fund paid upfront — often by the seller, a builder or the lender — makes up the difference each month. When the buydown ends, your payment returns to the note-rate payment.

Enter the loan, the note rate, how many points the rate is bought down and for how many years. The calculator shows your payment during and after the buydown, the fund needed, and — if you enter a seller or lender credit — whether it covers the fund.

Plan for the higher payment when the buydown ends. To compare two rates for the whole remaining term, use our Mortgage Rate Change Calculator.