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Temporary Buydown Calculator
See how a 2/1 or 1/0 temporary buydown may reduce your estimated monthly payment during the first years of your mortgage.
2/1 Buydown estimate
Rate reduced by 2% in year one and 1% in year two.
| Period | Effective rate | P&I payment | Monthly savings | Period savings |
|---|---|---|---|---|
| Year 1 | — | — | — | — |
| Year 2 | — | — | — | — |
| Year 3+ | — | — | $0.00 | $0.00 |
1/0 Buydown estimate
Rate reduced by 1% in year one, then returns to the full note rate.
| Period | Effective rate | P&I payment | Monthly savings | Period savings |
|---|---|---|---|---|
| Year 1 | — | — | — | — |
| Year 2+ | — | — | $0.00 | $0.00 |
What is a temporary buydown?
Funds paid at closing temporarily reduce the borrower’s effective payment. The loan itself keeps the full note rate, and the borrower must qualify under applicable program requirements.
Who funds the buydown?
The cost may be funded through an eligible seller, builder, lender, or other permitted contribution, subject to loan-program and investor guidelines.
Important: This calculator provides hypothetical estimates for illustrative and educational purposes only. It is not a loan estimate, commitment to lend, approval, or guarantee of terms. Principal-and-interest calculations do not include property taxes, homeowners insurance, mortgage insurance, HOA dues, closing costs, or other charges unless the user enters those optional monthly amounts. Actual payments, buydown costs, eligibility, contribution limits, rates, and terms may vary. Consult a licensed Buena Vista Lending Group mortgage loan originator for a personalized analysis. Buena Vista Lending Group, LLC · NMLS #347423 · Equal Housing Opportunity.
