finance calculator
Mortgage Buydown Calculator
See how 2-1 or 1-0 buydowns reduce early payments, total savings in the buydown years, and whether the buydown cost breaks even.
Results
- Base monthly payment
- $2,528
- Year 1 payment
- $2,027
- Year 2 payment
- $2,271
- Savings in year 1
- $6,018
- Savings in year 2
- $3,085
- Total savings (first years)
- $9,104
- Buydown cost
- $8,000
- Net savings after cost
- $1,104
- Breakeven months on cost
- 21.09
How to use this calculator
- Enter loan amount, base rate, year 1/2 buydown rates, term, and buydown cost.
- Review payment reductions, savings in years 1–2, net savings after cost, and breakeven months.
Inputs explained
- Buydown cost
- Upfront cost to fund the buydown (often paid by seller/builder/lender credit).
- Year 1/2 rate
- Temporary rates during the buydown period (e.g., base minus 2% and base minus 1%).
How it works
Base payment uses the base rate. Year 1 and year 2 payments use their respective teaser rates over the full term for simplicity.
Savings are the payment differences for each year. Net savings subtracts the buydown cost.
Breakeven months estimate how long it takes for the early-year savings to cover the buydown cost (over the buydown window).
When to use it
- Evaluating 2-1 or 1-0 buydown offers from sellers/builders.
- Comparing buydown cost vs total early-year savings.
Tips & cautions
- If you plan to refinance early, the buydown may or may not pay off; check the breakeven months.
- Confirm whether unused buydown funds apply to principal if you refinance or sell early.
- Simplified; uses teaser rates for payment calc but does not model rate resets beyond year 2.
- Does not include taxes/insurance/PMI; principal and interest only.
Deep dive
Evaluate a 2-1 or 1-0 mortgage buydown by comparing early payment savings to the buydown cost and seeing breakeven months.
Enter loan details, buydown rates, and cost to see payment reductions, total savings, and net benefit.
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