Calculators
Calculator
2-1 Temporary Buydown
Calculate year 1, year 2, and year 3 payments on a 2-1 temporary buydown, and the total subsidy cost (typically seller-paid).
Inputs
$
%
Subsidy cost
$13,822
total seller-paid buydown
Typically paid by seller as concession at closing. Placed in escrow and used to subsidize the rate reduction over years 1 and 2.
Payment schedule
| Year | Effective rate | Monthly payment | Monthly savings |
|---|---|---|---|
| Year 1 | 4.750% | $3,130 | $762 |
| Year 2 | 5.750% | $3,501 | $390 |
| Year 3 | 6.750% | $3,892 | — |
Rates shown are illustrative and subject to change without notice. Actual rate, APR, and terms will depend on creditworthiness, loan-to-value, property type, occupancy, loan amount, loan program, and other factors. Not all applicants will qualify.