Temporary Buydown
Calculator
Show buyers exactly what a 2-1 buydown saves, and what the seller credit must fund
Model 2-1, 3-2-1, and 1-0 temporary buydowns with per-year payments, monthly relief, and the exact escrow cost. The tool loan officers use to structure seller concessions in a high-rate market.
See It In Action
Play with the calculator below. This is exactly what your visitors will see.
Temporary Buydown Calculator
Calculate 2-1 and 3-2-1 buydown costs, reduced payments, and required seller credit
Buydown Cost (Seller Credit Needed)
$9,104
Monthly P&I by Year
Year 1
$2,027
Year 2
$2,271
Year 3
$2,528
After Buydown
$2,528
Payment Relief
Year 1 Relief
$6,018
Year 2 Relief
$3,085
Year 3 Relief
$0
Yr 1 Monthly Relief
$502
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How It Works
Get your results in four simple steps
Enter the scenario
Fill in 4 plain-English inputs across 1 short sections. Sensible defaults get you a result immediately.
Read the verdict
Results update instantly: the headline figure, supporting stats, and clear pass/fail states where qualification applies.
Share or download
Send a live share link or download a branded PDF scenario report to keep the conversation going.
Why This Calculator
Purpose-built features that give you the insights you actually need.
Loan Details
Your loan and note rate
How the Temporary Buydown math works
Calculate 2-1 and 3-2-1 buydown costs, reduced payments, and required seller credit
Industry Standards We Follow
- Payments amortized at each reduced rate over the full term
- Buydown cost equals the sum of payment differences (industry-standard escrow funding)
Key Variables in Our Calculation
- monthlyRateMonthly note rate
- termMonthsTerm in months
- fullPaymentP&I at the full note rate
- yr1MonthlyRateYear 1 reduced monthly rate
- yr2MonthlyRateYear 2 reduced monthly rate (note rate for a 1-0)
- yr3MonthlyRateYear 3 reduced monthly rate (note rate unless 3-2-1)
- yr1PaymentP&I during year 1
- yr2PaymentP&I during year 2
Expert Insights
Get the most out of your calculations with these professional tips
Start from the defaults
Defaults reflect current market conditions; change only what you know about your scenario.
Stress-test the result
Nudge the most uncertain input both directions to see how sturdy the conclusion is.
Put it on your site
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Frequently Asked Questions
Everything you need to know about the Temporary Buydown Calculator
The cost equals the total payment relief: the sum of the monthly differences between the full note-rate payment and the reduced payments across the buydown years. The calculator shows this figure as the seller credit needed.
Unused escrow funds are typically credited against the loan principal at payoff, so the money is not lost.
Who Uses This Calculator
Loan Officers
Structure seller-paid buydowns and show borrowers the year-by-year payment path.
Listing Agents
Price a buydown credit as an alternative to a price cut that often costs the seller less.
Home Buyers
See exactly what your payment is in years one, two, and beyond.
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