Temporary Buydown Calculator

A temporary buydown is a seller-paid subsidy that lowers your interest rate for the first 1, 2, or 3 years of your loan. Use this calculator to compare 3-2-1, 2-1, and 1-0 buydowns side by side and see exactly how much seller credit is needed.

How a Temporary Buydown Works

The seller deposits a lump sum into escrow at closing. Each month, the lender draws from that account to cover the difference between your subsidized payment and the full payment. When the account is exhausted, you pay the full rate.

3-2-1 vs 2-1 vs 1-0 Buydown

A 3-2-1 buydown reduces your rate by 3% in Year 1, 2% in Year 2, and 1% in Year 3 before returning to the full note rate. A 2-1 buydown reduces it by 2% then 1%. A 1-0 buydown reduces it by 1% in Year 1 only.

Contact Secure Choice Lending at (951) 733-8925 or info@securechoicelending.com. NMLS #1689518.