Mortgage Rate Buydown Calculator
Calculate the cost and savings of temporary (2-1, 3-2-1) and permanent rate buydowns. Compare year-by-year payments and find your break-even point.
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Frequently Asked Questions
What is a 2-1 buydown?
A 2-1 buydown temporarily reduces your rate by 2% in year 1 and 1% in year 2, then reverts to the full rate. The seller or builder typically covers the cost via a concession.
Are buydowns worth it?
A temporary buydown transfers the seller concession into lower early payments. A permanent buydown (discount points) makes sense if you plan to stay long enough to recoup the cost through the permanently lower rate.
What does one discount point cost?
One point equals 1% of the loan amount. For a $400,000 loan, one point costs $4,000 and typically reduces your rate by about 0.25%.