Buyer Tools
Ask for the buydown. Know what it's worth.
Sellers and builders use temporary rate buydowns to close deals in high-rate markets. This calculator shows exactly what a 1/0, 2/1, or 3/2/1 buydown saves you each year — and what it costs the seller. Download a clean PDF to use in your offer negotiation.
Loan details
$130,000
1/0 Buydown
1 year of savings
Buydown Cost
$4,103
seller concession or builder credit
2/1 Buydown
2 years of savings
Buydown Cost
$12,120
seller concession or builder credit
3/2/1 Buydown
3 years of savings
Buydown Cost
$23,844
seller concession or builder credit
For the PDF (optional)
Monthly payments shown are principal and interest only — they exclude property taxes, insurance, HOA, and PMI. Buydown cost is the estimated seller concession required to fund the rate subsidy. Consult your lender for exact figures.
How buydowns work
The seller pays once. You save every month.
A temporary rate buydown is a seller concession deposited into a custodial escrow account at closing. Your lender still originates the loan at the full note rate — but the escrow subsidy makes up the difference each month during the buydown period.
The most common structure is the 2/1 buydown: your rate is 2% below the note rate in year one, 1% below in year two, and at the full note rate from year three onward. If rates drop, you can refinance — and the unused escrow balance may be applied to your principal.
In a buyer’s market or with new construction, this is often negotiable as part of the purchase price or builder incentives. Ryan can help you structure the ask.
Next step
Want a lender-specific buydown quote?
This calculator gives you the negotiating framework. For an exact quote tied to a specific property and lender — Ryan can have one in your hands same day.