Estimate the cost of a 3-2-1, 2-1, 1-1, or 1-0 mortgage rate buydown. A free tool for Realtors from Jonathan Wilson, Home Loans Made Awesome.
Jonathan D. Wilson, Mortgage Advisor
Barrett Financial Group, L.L.C.
Phone: (615) 545-4031
Email: [email protected]
NMLS# 337336
Company NMLS# 181106
Licensed in: TN, GA, AL, ME, HI, FL, KY
Estimate the cost of a 3-2-1, 2-1, 1-1, or 1-0 mortgage rate buydown. A free tool for Realtors from Jonathan Wilson, Home Loans Made Awesome.
LOAN PROGRAMS
Plug in a loan amount, rate, and term to see exactly what a 3-2-1, 2-1, 1-1, or 1-0 buydown costs — and how much your buyer's payment drops in year one. Great for showing sellers why offering a buydown can help a home sell faster.
Regular principal & interest at the note rate: /mo. Each plan compares that payment with the lower buydown payment.
-year rate step-down
Total buydown cost
A temporary buydown lowers your buyer's interest rate for the first year or two of the loan, easing them into their full payment while rates (or their income) catch up. The numbers above show the actual dollars it takes to fund that discount — money that's often negotiated as a seller concession or credit rather than paid out of pocket.
The 3-2-1 and 2-1 options step the rate up gradually, while the 1-1 keeps a flat discount for two years , and the 1-0 is the simplest — one year of relief, then straight to the note rate. There's no single best option; it comes down to what a seller is willing to credit and how much cushion your buyer wants in year one.
Have a buyer who wants to see this run with their real numbers? Send them my way — happy to walk through it together.
A buydown is usually funded as a seller concession — but every loan program caps how much a seller can contribute, based on the down payment (LTV) and property type.
*VA allows the seller to pay all standard closing costs and discount points on top of this 4%, which is reserved for other concessions (like a temporary buydown, debt payoff, or a home warranty).
These caps are general guidelines and can vary by investor, credit score, and loan-level pricing adjustments — and program rules do change. Always confirm the exact cap for your buyer's specific scenario with me before writing it into an offer.
Estimates only, for discussion purposes. Actual buydown costs are set by the loan program and investor guidelines at time of lock. Not a commitment to lend. Equal Housing Lender. Licensed in AL, FL, GA, KY & TN.
Home Loans Made Awesome. Bring the loan amount, the seller credit, or the rate sheet and I'll show you which buydown is worth it.