2-1 Buydown Calculator
Show clients exactly how a 2-1 temporary rate buydown reduces their payment in years one and two — and what it costs the seller or builder.
20.0% of home price · Loan: $320,000
Year 1: 4.75% · Year 2: 5.75% · Year 3+: 6.75%
How the 2-1 Buydown Works
A seller or builder deposits a lump sum into an escrow account that subsidizes the borrower's interest rate for the first two years. Year 1: rate is reduced by 2%. Year 2: reduced by 1%. Year 3 through payoff: the full note rate applies.
$2,169.27/mo
Save $406.24/mo
$2,367.43/mo
Save $208.08/mo
$2,575.51/mo
Buydown Cost Summary
Year 1 Savings (borrower)
$406.24/mo
$4,874.91 over 12 months
Year 2 Savings (borrower)
$208.08/mo
$2,496.97 over 12 months
Total Buydown Cost
$7,371.88
Seller / builder deposit
* Estimates are for informational purposes only. Actual buydown costs and savings may vary. Not a loan commitment. The 2-1 buydown requires seller or builder-paid concessions; consult your loan officer for qualifying requirements.