Mortgage Buydown Calculator
Last updated: July 2026
Compare a standard mortgage payment with temporary 2-1 or 1-0 interest-rate buydown payments and estimate the required subsidy.
Estimated temporary buydown cost
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- Standard monthly payment: —
- Year 1 payment: —
- Year 2 payment: —
- Year 1 monthly savings: —
On this page
Quick summary: Compare a standard mortgage payment with temporary 2-1 or 1-0 interest-rate buydown payments and estimate the required subsidy. Enter the requested values, calculate, review the result, and compare more than one realistic scenario before making a decision.
Read the complete guide
What this calculator estimates
Compare a standard mortgage payment with temporary 2-1 or 1-0 interest-rate buydown payments and estimate the required subsidy. It is designed for fast planning and comparison in the United States. The output is an estimate, not a binding quote, approval, tax determination, insurance offer or professional recommendation.
How to use it
Enter the requested values using a single consistent time period and currency. Select Calculate, review the headline result and supporting figures, then change one assumption at a time to compare another scenario.
How the calculation works
The calculator computes principal-and-interest payments at the note rate and at each temporary reduced rate. The estimated subsidy is the sum of the monthly payment differences during the reduced-rate periods.
Important limitations
Temporary buydown programs vary by lender and may require specific seller, builder or lender funding. Taxes, insurance, mortgage insurance, points and permanent rate changes are not included.
Frequently asked questions
Is the result exact?
No. It is a planning estimate based on the assumptions entered.
Can I compare different scenarios?
Yes. Change one input at a time so you can see which assumption changes the result.
Does the calculator store my inputs?
The calculation runs in the browser and does not require an account. Avoid entering unnecessary confidential information.