2-1 Buydown Calculator

Model a 2-1 or 3-2-1 temporary rate buydown and see how much lower your payment is in years 1 and 2. Calculate what sellers can fund as a concession. Free tool, no credit pull.

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  3. 2-1 Buydown Calculator

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What is a mortgage rate buydown?

A buydown reduces your interest rate temporarily (2-1, 3-2-1) or permanently (discount points) in exchange for an upfront cost paid at closing, often funded by the seller.

Can sellers fund a buydown as a concession?

Yes. Seller concessions (up to 3–6% of purchase price depending on loan type) can pay for a temporary buydown. The cost to the seller equals a small price reduction, but your payment is lower for 1–3 years.

When does a temporary buydown make more sense than a permanent rate reduction?

When you expect rates to drop within 2–3 years (refinancing before expiration), when the seller is funding the cost, or when your income is expected to grow significantly.