2-1 Buydown Calculator (Temporary Buydown Calculator)

1) Confirm the year-3 payment first

The most important number is the full note-rate payment (year 3+). If that payment does not fit your budget, a temporary buydown can make the first two years feel easier while still leaving you exposed later.

2) Compare buydown relief vs. seller credits

In some deals, the same seller concession could be used for closing costs, discount points, or a temporary buydown. Use the Closing Costs Calculator to estimate your cash-to-close and compare which use of credits solves the bigger constraint.

3) Watch rate volatility near lock decisions

Buydown math can look different if the note rate moves. Pair this calculator with Mortgage Rates Today and the Fed Meeting Schedule when you are making a decision around major Fed or jobs-data weeks.

4) Check qualification and equity assumptions

Qualification still depends on lender underwriting and your full housing payment. Use the LTV Calculator and Mortgage Calculator to keep your down payment, PMI exposure, and payment path aligned.