Buyer & Agent Tool
Temporary Buydown Calculator
Buydown type
Total buydown cost
$16,587
Sum of all monthly subsidies
Note-rate P&I payment
$4,669.91
At 6.75% for the life of the loan
| Period | Effective rate | Your P&I | Monthly subsidy | Period subsidy |
|---|---|---|---|---|
| Year 1 | 4.75% | $3,755.86 | $914.05 | $10,968.55 |
| Year 2 | 5.75% | $4,201.72 | $468.18 | $5,618.18 |
| Year 3+ | 6.75% | $4,669.91 | — | $16,586.73 |
A temporary buydown does not change the note rate or the qualifying rate. Your loan's note rate remains 6.75% and the full $4,669.91 P&I payment applies once the subsidy period ends. The subsidy is funded upfront (often by the seller or builder) and held in escrow. Program availability varies.
Educational estimate only. Results are not a Loan Estimate, rate lock, rate commitment, or guarantee of loan approval. Actual rates, payments, taxes, insurance, and program eligibility vary and are subject to underwriting. Contact Marc Chamberlain for a personalized quote.
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