Temporary vs. permanent rate buydowns
This calculator models temporary payment subsidies. A permanent discount-point purchase works differently; compare it in the Points Buy-Down Calculator.
How much must the seller or builder fund?
The estimated subsidy is the difference between the full-note payment and each temporary payment, multiplied by the number of months. Actual agreements can include taxes, insurance, escrow and program-specific rules.
Use the full payment for affordability
Compare the note-rate payment with the Mortgage Calculator, Affordability Calculator and Closing Cost Calculator.
Results are illustrative, exclude taxes, insurance and PMI, and are not a lender quote or approval decision.