Temporary buydown calculator
Sample calculator: a ballpark estimate. Your exact numbers are verified once your full application is complete.
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A temporary buydown is usually paid by the seller or builder as a closing credit. That money goes into an account that covers part of your payment each month during the buydown years. If you refinance or sell before it ends, leftover funds are typically applied to your loan balance; confirm the details with your loan officer. Principal and interest only. The rate is an example, not a current offer. Estimate only.
For illustration only. Results are estimates based on the numbers you enter and general assumptions, and may not reflect your situation. This is not a Loan Estimate, pre-approval, rate quote or commitment to lend. Any rate shown is an example, not a current rate or an offer. Your actual eligibility, loan amount, rate, payment and costs depend on your credit, income, property, appraisal and underwriting, and can change without notice. Not all applicants qualify. CrossCountry Mortgage, LLC NMLS #3029. Equal Housing Opportunity. Full disclaimer.
How a temporary buydown works
The seller or builder puts money into an account at closing. Each month during the buydown years, that account covers part of your payment, so you pay less while you settle in. After the last buydown year, your payment rises to the full note-rate payment. Most loans still qualify you at the full rate, so a buydown lowers early payments but usually doesn’t raise how much you can borrow.
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Open →Temporary buydown questions
Can I use a temporary buydown on a VA loan?
Yes. A 2-1 or 3-2-1 buydown is allowed on VA purchase loans and is usually paid by the seller or builder. On a VA loan, a seller-paid buydown counts toward VA’s 4% limit on seller concessions.
What happens to buydown money if I refinance or sell?
Leftover buydown funds are typically applied to your loan balance. Confirm the details with your loan officer.
Is a 2-1 buydown better than a permanent rate buydown?
It depends on how long you’ll keep the loan and whether you expect to refinance. A temporary buydown lowers early payments; buying down the rate permanently lowers every payment. Shirley’s team can compare both for your loan.
