Compare 3-2-1, 2-1, 1.5-0.5, and 1-0 buydown structures. Enter the loan terms to see the seller or builder subsidy cost and the reduced payments for each year.
All payment amounts shown reflect principal and interest (P&I) only. Taxes, insurance, and HOA dues are not included.
| Year | Eff. Rate | Payment (P&I) | Mo. Savings | Annual Subsidy |
|---|---|---|---|---|
| 1 | 3.875% | $2,944.86 | $1,169.16 | $14,030 |
| 2 | 4.875% | $3,314.17 | $799.85 | $9,598 |
| 3 | 5.875% | $3,704.51 | $409.51 | $4,914 |
After Year 3, buyer reverts to the note rate of 6.875% with a monthly payment of $4,114.02 (P&I) for the remainder of the loan term.
| Year | Eff. Rate | Payment (P&I) | Mo. Savings | Annual Subsidy |
|---|---|---|---|---|
| 1 | 4.875% | $3,314.17 | $799.85 | $9,598 |
| 2 | 5.875% | $3,704.51 | $409.51 | $4,914 |
After Year 2, buyer reverts to the note rate of 6.875% with a monthly payment of $4,114.02 (P&I) for the remainder of the loan term.
| Year | Eff. Rate | Payment (P&I) | Mo. Savings | Annual Subsidy |
|---|---|---|---|---|
| 1 | 5.375% | $3,506.82 | $607.20 | $7,286 |
| 2 | 6.375% | $3,906.99 | $207.03 | $2,484 |
After Year 2, buyer reverts to the note rate of 6.875% with a monthly payment of $4,114.02 (P&I) for the remainder of the loan term.
| Year | Eff. Rate | Payment (P&I) | Mo. Savings | Annual Subsidy |
|---|---|---|---|---|
| 1 | 5.875% | $3,704.51 | $409.51 | $4,914 |
After Year 1, buyer reverts to the note rate of 6.875% with a monthly payment of $4,114.02 (P&I) for the remainder of the loan term.
All payments shown are principal and interest (P&I) only and do not include property taxes, homeowners insurance, mortgage insurance, or HOA dues. This calculator provides estimates for illustrative purposes only and is not a commitment to lend. Actual rates, payments, and buydown costs are subject to credit approval, program guidelines, and market conditions. Temporary buydown funds are typically paid by the seller, builder, or other interested party into an escrow account. Contact America First Mortgage for a personalized quote. Equal Housing Lender · Company NMLS #2564858.