Mortgage Buydown Calculator

Compare temporary effective-rate payments with the full note-rate payment and estimate the subsidy required for the selected buydown schedule.

Loan amount

Note rate (%)

Term years

Temporary buydown

—Full note-rate monthly P&I

Year	Temporary rate	Borrower payment	Monthly subsidy	Annual subsidy

—Estimated total temporary-payment subsidy

This models a temporary payment subsidy from rate-equivalent payment differences. The mortgage note rate and contractual full payment remain separate concepts; actual program terms and funding rules are lender-specific.

Model a temporary buydown

Choose a 3-2-1, 2-1, 1-1, or 1-0 schedule. The tool compares payments calculated at the temporary effective rates with the full note-rate payment and totals the modeled subsidy across the temporary years.

Program terms vary

Actual temporary buydowns are lender/program specific. This calculator models payment differences and does not determine eligibility, who may fund the subsidy, escrow handling, qualification rules, or contractual disclosures.