Explore how a temporary mortgage buydown could lower your payments in the early years—and see what to budget when the full payment begins.
Your home. Your numbers.
Year 1 · estimated monthly out-of-pocket
Principal & interest + entered taxes, insurance and HOA
Year 1 monthly payment relief
Estimated buydown funding
Your payment roadmap
Period
Payment rate*
P&I / month
Total / month
Monthly relief
*Payment-equivalent rate used to calculate your reduced contribution. Your contractual note rate stays the same.
01 / Lower payments to start
A 2-1 plan calculates your contribution at 2 percentage points below the note rate in year one, then 1 point below in year two.
02 / Funding covers the gap
The estimated funding equals the payment subsidies over the buydown period. It excludes lender fees and other closing costs; who pays is negotiated and subject to loan rules.
03 / Plan for the full payment
The buydown ends; the full note payment continues. Qualification generally uses the full note rate. Do not depend on a future refinance to afford the home.