Mortgage Rate Buydown Calculator (2-1 / 3-2-1)
Builders and sellers often offer 2-1 or 3-2-1 temporary rate buydowns. Compute year-by-year payment + escrow amount needed to fund the buydown.
FINANCEBuilders and sellers often offer 2-1 or 3-2-1 temporary rate buydowns. Compute year-by-year payment + escrow amount needed to fund the buydown.
Detailed instructions, formula notes, and US-context guidance shown in the calculator above.
Mortgage Rate Buydown Calculator (2-1 / 3-2-1)
Temporary rate buydown — common builder/seller concession in 2024-2026 high-rate market. The seller funds an escrow that subsidizes payment for the first 2-3 years.
You qualify based on the NOTE rate (permanent). Buydown can't fund itself — must come from seller/builder concession or lender credit. Always cheaper than buying permanent points if you might refi within 3 years.