Drop in a purchase price, down payment and rate to see roughly what a temporary or permanent buydown could cost, whether a seller, builder or buyer pays for it, and how it compares to simply lowering the price. A planning tool, not a quote.
Today's average 30-yr fixed rate is running around 7.33% — use it as a starting point, or set a rate that fits the scenario you're exploring.
Source: Mortgage News Daily, Oct 23, 2026
For illustration purposes only. Not a commitment to lend, a rate quote or lock, or a Loan Estimate. Your actual numbers depend on your situation. See important disclosures.
$
Price of the home.
%
or
$
Type a percent or a dollar amount.
%
Rate with no buydown applied.
Estimated Loan AmountIllustration only. Assumes a 30-year fixed rate, principal and interest only. Taxes, insurance, mortgage insurance and HOA dues are not included.
$600,000
Temporary Buydown
Lower payments for the first 1–3 years, funded up front into an escrow account (3-2-1, 2-1, or 1-0).
Permanent Rate Buydown
Discount points are paid at closing to permanently lower the rate for the life of the loan.
Temporary Buydown
Cost to fund the buydown escrow
Money paid up front funds an escrow account that subsidizes the buyer's payment for the first one to three years. The note rate never changes — the funds just buy down what the buyer pays early on. Funds may come from a seller, builder, or buyer, subject to loan program rules.
3-2-1 Buydown
2-1 Buydown
1-0 Buydown
Small print: loan amounts over $850,000 are typically jumbo loans, and jumbo loans generally do not allow a 3-2-1 buydown. Most jumbo programs allow only a 2-1 or 1-0 structure, if they allow a temporary buydown at all. The 3-2-1 figures below are for illustration only. Ask a loan officer what your program permits.
Estimated Buydown Cost
$0
— of loan amount
Year 1 Monthly Savings
$0
vs. paying the full note rate
Buyer's Effective Rate, Yr 1
0.000%
on the note rate above
Payment schedule
Period
Effective Rate
Monthly Payment
Monthly Savings
Price Cut vs. Seller Credit
To give the buyer the same Year 1 payment, the price would have to drop by the amount on the left. The amount on the right is what a seller credit toward the buydown would cost.
Price reduction needed
$0
of purchase price
vs
Seller credit (buydown cost)
$0
what it costs to fund the escrow instead
Price cut
Seller credit
Resulting purchase price: $0to match the Year 1 payment
Permanent Rate Buydown
Cost to buy the rate down for good
Discount points paid at closing permanently lower the note rate. As a rule of thumb, roughly 1 point (1% of the loan amount) buys the rate down about 0.25% — actual pricing depends on the day's market and loan program.
%
How much lower the buyer's permanent rate would be.
Estimated Points Cost
$0
— of loan amount
New Rate / Payment
0.000%
$0 / mo
Monthly Savings
$0
Breakeven in — months
Price Cut vs. Seller Credit
To give the buyer the same monthly payment as the bought-down rate, the price would have to drop by the amount on the left. The amount on the right is what a seller credit for the points would cost.
Price reduction needed
$0
of purchase price
vs
Seller credit (points cost)
$0
what it costs to buy the rate down instead
Price cut
Seller credit
Resulting purchase price: $0to match the bought-down payment
Want numbers for your actual situation?
This is a planning illustration, not a quote — actual buydown pricing depends on the borrower, the loan program, and the day's market. Email the team and we'll walk you through a personalized scenario with real figures.
