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Lower payments up front, paid for by the seller.

A temporary buydown drops the buyer's rate for the first one, two, or three years. A seller credit covers the cost. Run the deal below and get the exact credit to write into the offer.

Run the numbers How it works

The 3-2-1 buydown: the rate steps up one year at a time.

Build the scenario

Enter the loan details, pick a program, and everything updates as you type.

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Loan amount
$360,000
Price minus down payment
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The buyer qualifies at this rate and pays it once the buydown ends.
Sets the seller concession limit check.
Closing cost credits on top of the buydown, if any.
Seller credit to write into the offer
$17,000

Exact cost: $16,895.57 (4.693 points)

Rounded up to the next $500 to leave a cushion, since the final figure moves slightly with the locked rate.

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Like these numbers?

Send this exact scenario to Joe and he'll confirm what's available at today's pricing.

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$693/moYear 1 monthly savings
$1,824.07Year 1 payment (P&I)
$2,517.17Full payment at note rate

What the buyer pays each year

The seller credit covers the gap between the buydown payment and the full payment.

Buyer pays Covered by seller credit
PeriodRatePaymentMonthly savingsAnnual savings
Total buydown cost

Principal and interest only. Taxes, insurance, HOA, and mortgage insurance not included.

All four programs on this loan

Same loan, four ways to structure the first years. Tap any card to load it into the calculator.

How a temporary buydown works

Three things to know before writing it into an offer.

The rate starts lower, then steps up

On a 2-1, the buyer pays 2% below the note rate in year one and 1% below in year two. From year three on, they pay the full note rate. They qualify at the note rate, so the full payment is already underwritten.

The savings sit in escrow

The seller credit funds an escrow account at closing. Each month it covers the gap between the reduced payment and the full payment. If the buyer sells or refinances early, unused funds typically go back to the buyer, usually as a credit against the loan balance.

The seller pays for it

A seller credit funds the buydown in most deals. The same dollars usually do more for the buyer's payment as a buydown than as a price cut. The comparison below uses this exact loan.

Same $17,000, two ways to spend it

$0/moPayment drop as a price reduction, every year
$0/moPayment drop in year 1 as a 3-2-1 buydown

Price reduction assumes the same down payment percentage on the lower price. Principal and interest only.

Atlantic Coast Mortgage

Joe Lombardi

Branch Manager and Loan Officer, Atlantic Coast Mortgage. NMLS #1730862. Licensed in Florida and New Jersey. Send me your scenario and I'll show you whether a buydown, a permanent rate buydown, or a price reduction wins for your deal.

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732-CALL-JOE (732-225-5563) | jlombardi@acmllc.com | 732calljoe.com