Mortgage Buydown Calculator

Estimate your monthly mortgage payment with our Mortgage Buydown Calculator. Compare temporary mortgage buydown options, calculate payment savings, and see how lower introductory interest rates can improve home affordability.

Zip Code

Aberdeen WA (Grays Harbor)
Aberdeen ID (Bingham)
Acampo CA (San Joaquin)
Acme WA (Whatcom)
Acton CA (Los Angeles)
Adams OR (Umatilla)
Addy WA (Stevens)
Adel OR (Lake)
Adelanto CA (San Bernardino)
Adin CA (Modoc)
Adna WA (Lewis)
Adrian OR (Malheur)
Agate CO (Elbert)
Agness OR (Curry)
Agoura Hills CA (Los Angeles)
Agoura Hills CA (Los Angeles)
Aguanga CA (Riverside)
Aguilar CO (Las Animas)
Ahsahka ID (Clearwater)
Ahwahnee CA (Madera)
Airway Heights WA (Spokane)
Akron CO (Washington)
Alameda CA (Alameda)
Alameda CA (Alameda)
Alamo CA (Contra Costa)
Alamosa CO (Alamosa)
Alamosa CO (Alamosa)
Albany CA (Alameda)
Albany OR (Linn)
Albany OR (Linn)

Buydown

3/2/1 2/1 1/1 1/0

Purchase Price

Loan Amount

Interest Rate

Loan Term

Property Tax (per month)

Home Insurance (per year)

HOA Dues (per month)

View full report

Payment breakdown

Amortization schedule

Payment breakdown

The total buydown fee for this loan is

See your lower monthly payment for the first years of the loan.

Select year:

/for year 1

Monthly Payment

Interest Rate

Monthly Savings

Principal and Interest

Taxes

HOA

Buydown Contribution

Insurance

Amortization schedule

Over years you’ll pay and this is based on an estimated monthly payment of .

Your total principal payment is and your total interest payment is .

Connect with a Mortgage Advisor Today!

Whether you’re buying a home or ready to refinance, our professionals can help.

425-401-8787 Get Started

Common Buydown Calculator Terms

A buydown calculator helps estimate how a reduced interest rate—either temporary or permanent—can lower your monthly mortgage payment. The terms below explain the key inputs used to calculate buydown savings and payment changes over time.

rates_depend_on_multiple_factors_img

Buydown Type

Defines whether the interest rate reduction is temporary (such as a 2-1 or 1-0 buydown) or permanent. Temporary buydowns reduce payments for a limited period, while permanent buydowns lower the rate for the full loan term.

Buydown Period

The length of time the reduced interest rate applies. For temporary buydowns, this is usually one to three years before the loan adjusts to the standard rate.

Initial Interest Rate

The lowered interest rate applied at the start of the loan during the buydown period. This rate directly impacts the reduced monthly payment shown in the calculator.

Standard Interest Rate

The regular interest rate the loan will return to after the buydown period ends. This rate is used to calculate future monthly payments once the buydown expires.

Buydown Cost

The upfront amount paid at closing to fund the buydown. This cost may be paid by the borrower, seller, builder, or lender, depending on the loan structure.

Monthly Payment Adjustment

The difference between the reduced payment during the buydown period and the standard mortgage payment. The calculator uses this to show how payments change over time.

Total Buydown Savings

The estimated amount saved during the buydown period compared to making standard payments from day one.

Live Mortgage Rates by States

Compare today’s mortgage rates and get personalized rate quotes based on your location, loan type, and home financing goals.

What This Calculator Helps You Estimate

A mortgage buydown calculator helps you estimate how a temporary or permanent interest rate reduction can affect your monthly mortgage payment.

Whether you’re comparing a 3-2-1 buydown, 2-1 buydown, 1-1 buydown, or 1-0 buydown, this calculator shows:

Your estimated monthly payment
Monthly savings during the buydown period
Total buydown contribution
Payment changes after the reduced-rate period ends
Estimated amortization schedule

The calculator is designed for buyers comparing financing options before making an offer or reviewing a Loan Estimate

Get Started

What Is a Mortgage Buydown?

A mortgage buydown is a financing strategy that temporarily or permanently reduces your interest rate by using upfront funds paid at closing.

With a temporary buydown, your interest rate gradually increases until it reaches your permanent note rate.

what is a mortgage buydown svg

Temporary vs. Permanent Buydowns

Compare temporary and permanent mortgage buydowns to understand how each option affects your interest rate, monthly payment, and long-term borrowing costs.

Feature

Temporary Buydown

Permanent Buydown

Interest Rate

Reduced for the first 1–3 years

Reduced for the entire loan term

Monthly Payment

Lower initially, then increases to the full payment

Lower throughout the life of the loan

Upfront Cost

Generally lower

Typically higher

Who Commonly Pays

Often funded by the seller, builder, or lender

Usually paid by the borrower

Best For

Buyers expecting higher future income or refinancing

Buyers planning to keep the mortgage long term

Rate Changes

Returns to the original note rate after the buydown period

Remains the same for the life of the loan

When Is a Buydown Worth It?

A mortgage buydown may make sense if:

You’re buying your first home
You expect your income to increase
The seller offers closing cost credits
You’re relocating for work
You’re purchasing a newly built home with builder incentives

However, a buydown isn’t always the best option. If you expect to sell your home quickly or prefer to keep more cash available at closing, paying for a permanent rate reduction may not provide enough long-term value. Because future interest rates are uncertain, a buydown should not rely solely on the assumption that refinancing will definitely become attractive.

Get Started

3-2-1 Buydown

Ideal for maximum early payment relief.

Relocating
First-time buyers
Large purchase price

2-1 Buydown

The most popular buydown option.

Lower upfront cost
Meaningful payment savings

1-1 Buydown

Provides modest savings for two years.

Often used when seller concessions are limited.

1-0 Buydown

Simple one-year payment reduction.

Popular when buyers expect future refinancing opportunities.

Who Pays for a Mortgage Buydown?

Several parties may fund the buydown:

Homebuyer
Home seller
Home builder
Mortgage lender

Seller-paid buydowns have become increasingly common as a negotiating tool in slower housing markets.

Talk to a Loan Officer

Compare Mortgage Loan Options Available in WA, OR, ID, CA & CO

30 Year Fixed Rate Mortgage

Jumbo Mortgage Loan

Cash Buyer Program

Bridge Loans

Diamond Homebuyer Program

Fixed Rate Mortgages

Investment Property Mortgage Loan

Second Home Mortgage Loans

Self-Employed Mortgage Loan

Our Reviews

Hannah Polterock

July 9, 2026

Working with Sammamish Mortgage has been incredible. The whole team was always fast to respond to any questions, and we felt supported through the process. Really appreciated the reassurance and work everyone put in to make sure we closed on time, even with a fairly tight closing timeline of three weeks. Shoutout to Christina Heaps and Barb Kite, they are the absolute best!

Patrick Stancil

July 7, 2026

Ryan and his team (shout out to Shelly) are nothing but professional and the absolute best! They were highly responsive and frequently in touch to make sure we were set to close on time. I can't recommend this team enough!

Shelby Hallford

July 6, 2026

I had never heard of Sammamish prior to this home purchase, and it's not my first home purchase. Im so glad we found them, Jessica and Shawn were incredible! Jessica was out a day on the weekend early on when still rate shopping and a teammate of hers gave a rapid response, which mattered to us and helped move the process when other companies wouldn't. She beat out competitors and was responsive. Shawn stepped in to work through the logistical side of things once we had decided to proceed, and without him, I dont think we would've closed on time due to some slow communication with other partners during the process. He was the one I leaned on most (between lending, title, and buying agent), even with questions not meant for him, due to his knowledge and responsiveness. Would 100% recommend to friends and family!

Zachary Deeds

June 30, 2026

Extremely communicative, fast to close and great rates. Couldnt be better for first time buyers like ourselves.

Robert MacDonald

June 25, 2026

Drew Ebner and his team were fantastic. Great communication, very prompt in their responses, and really helped guide us through every step of the process. Drew gave us spreadsheets to help us estimate mortgage amounts across a variety of interest rates and home values, which really enabled us to have confidence when viewing homes. The pre-approval process was another confidence-builder for the whole process as well. Drew was always quick to answer questions, kept me in-the-loop the whole way, and Shelly was a fantastic partner as well. They really made this extremely simple, something my wife and I are enormously grateful for through this, our first homebuying experience. Highly appreciative and will recommend the team to anyone else we know who is looking to buy!

J Hinshaw

June 25, 2026

Saved us money, time, and gave us peace of mind with their responsiveness and helpfulness. Got me a great interest rate! Would recommend to any and all

Cailen McDevitt

June 22, 2026

We used them for buying our first house. Very responsive, personable, helpful, good rate options, and they were able to help us close on our house in 21 days. We would certainly work with them again in the future.

FAQs

What is a mortgage buydown and how does it work?

A mortgage buydown is a financing option that temporarily or permanently lowers your mortgage interest rate, reducing your monthly payment. With a temporary buydown, the interest rate is reduced during the first few years of the loan before returning to the original note rate. The difference is typically funded by the seller, builder, lender, or another party through an upfront contribution.

What does the Mortgage Buydown Calculator calculate?

Our Mortgage Buydown Calculator estimates your monthly mortgage payments under different temporary buydown scenarios. It compares payments during the reduced-rate period and after the loan returns to its full interest rate, helping you understand how a buydown affects your monthly housing costs.

Which mortgage buydown options can I calculate?

This calculator supports several temporary mortgage buydown structures, including 3-2, 2-1, 1-1, and 1-0 buydowns. You can compare payment scenarios for each option to determine which best fits your financial goals and expected time in the home.

Who typically pays for a mortgage buydown?

In many home purchase transactions, the seller or builder pays for the temporary mortgage buydown as part of a seller concession to make the home more affordable. In some cases, lenders or buyers may also fund the buydown, depending on the loan program and negotiated purchase agreement.

What is the difference between a temporary and permanent mortgage buydown?

A temporary mortgage buydown reduces your interest rate for a limited period, usually one to three years, after which your payment returns to the original loan rate. A permanent buydown requires paying discount points at closing to permanently lower the interest rate for the entire life of the loan.

Is a mortgage buydown worth it?

A mortgage buydown may be beneficial if you expect your income to increase, anticipate lower interest rates in the future, or want lower monthly payments during the first years of homeownership. Whether it makes financial sense depends on your long-term plans, expected time in the home, and available seller concessions.

Can I refinance before the temporary buydown ends?

Yes. If interest rates decline or your financial situation changes, you can generally refinance your mortgage before the temporary buydown period expires, provided you qualify for a new loan. Refinancing may help you secure a lower long-term interest rate.

Can a mortgage buydown be used with FHA, VA, and Conventional loans?

Many temporary mortgage buydown programs are available for Conventional, FHA, and VA loans, although eligibility requirements vary by lender and loan program. Your mortgage professional can explain which buydown options are available for your specific loan.

Does this calculator include property taxes, homeowners insurance, and PMI?

The calculator can include estimated property taxes, homeowners insurance, and private mortgage insurance (PMI), depending on the information you enter. Including these expenses provides a more realistic estimate of your total monthly housing payment.

Are the calculator results guaranteed?

No. The Mortgage Buydown Calculator provides estimates based on the information you enter. Your actual monthly payment, interest rate, closing costs, and buydown eligibility may vary depending on lender guidelines, market conditions, credit profile, and the final terms of your mortgage.