Temporary Buydown Calculator

Representative example — required disclosures

Purchase price $437,500 · down payment 20% ($87,500) · amount financed $350,000 · 360 monthly payments (30-year fixed). Payment shown is principal & interest only (P&I Only) and excludes taxes, insurance, mortgage insurance and any HOA dues, which increase the actual payment.

Program	Interest rate	APR	Payment (P&I Only)	Finance charge
Conventional 30-yr fixed	6.526%	6.846% APR	$2,218	$451,680
FHA 30-yr fixed	6.002%	6.992% APR	$2,099	$405,596
VA 30-yr fixed	6.073%	6.453% APR	$2,115	$411,357

Finance charge is the total dollar cost of credit over the full term (total of payments less the amount financed, plus any discount points). Rates as of 2026-08-04. Example rates shown are not a quote. Assumes: owner-occupied SFR, 740+ FICO, ≤75% LTV, $350K loan amount, 30-yr fixed, FL. Your rate, APR and payment will differ based on credit profile, property type, loan amount, occupancy and other factors. Rates and terms are subject to change and may not be available at commitment or closing. This is not a commitment to lend. All loans subject to credit, income, property and underwriting approval. Todd Hanley NMLS #1013665 · United Direct Lending NMLS #1749719 · Equal Housing Opportunity.

How This Calculator Works & Key Assumptions

This calculator provides estimates for educational purposes only. It is not a loan application, pre-approval, commitment to lend, or rate lock.

Temporary buydowns reduce the note rate for 1-3 years. A 3/2/1 buydown reduces the rate by 3% in year 1, 2% in year 2, and 1% in year 3 before reverting to the full rate.
The buydown cost equals the total interest savings during the reduced-rate period and is typically paid by the seller, builder, or lender as a concession.
Payments are P&I only — taxes, homeowner's insurance, HOA, flood insurance, and mortgage insurance are not included in the comparison.
Qualification is typically based on the full note rate (not the bought-down rate), though some programs may qualify at the Year 1 rate.
Buydowns are different from discount points — buydowns are temporary rate reductions, while points permanently lower the rate.

This tool helps you compare buydown options side-by-side so you can negotiate the best closing cost credit for your purchase.

A Buydown Can Be the Best Closing Credit You Negotiate

Seller concessions don't have to go toward closing costs alone. A temporary rate buydown may reduce your monthly payment during the buydown period — actual savings vary by loan amount, rate, and program in Year 1 — and the seller funds it. I help buyers negotiate this into every deal where it makes sense.

Representative example — required disclosures

How This Calculator Works & Key Assumptions

A Buydown Can Be the Best Closing Credit You Negotiate

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