THE RATE SHOP · KANSAS & MISSOURI
Temporary Buydown Calculator
What if the seller helped lower your mortgage payment for the first few years?
Explore a 3-2-1, 2-1, or 1-1 buydown. See your early payment relief—and the seller or builder contribution you could negotiate to make it happen.
Run your numbers ↓ · How does it work?YOUR FIRST-YEAR MONTHLY PAYMENT RELIEF
—less per month for the first 12 payments
SELLER / BUILDER CONTRIBUTION TO DISCUSS
—Estimated amount set aside at closing to cover all of this plan’s payment reductions.
Or call/text Mike: 913-213-3335
SEE THE WHOLE PICTURE
Your payments, year by year
| When | Payment based on | Principal & interest you pay | Payment with entered extras | Monthly relief |
|---|
The “payment based on” rate explains the temporary discount; your actual fixed loan rate does not change. Taxes, insurance, mortgage insurance, and HOA are held constant here so you can isolate the buydown’s effect. Those costs can change over time.
Compare all three options
Same loan. Same full rate. Different ways to ease into the payment.
The contribution shown funds the payment relief only—not your down payment or other closing costs. Mike can help your Realtor structure the full request.
THE PLAIN-ENGLISH VERSION
A head start on your payments—not a different mortgage.
A temporary buydown is a way to reduce the amount you pay during the first one to three years of a mortgage. Think of it as a payment-help account funded at closing. Each month, you pay your reduced portion and that account covers the difference.
Your loan still has its original fixed interest rate. When the help ends, you make the full payment. That is why this calculator shows both numbers together.
3-2-1 buydown
Payments based on a rate 3 percentage points lower in year one, 2 lower in year two, and 1 lower in year three. Full payment begins in year four.
2-1 buydown
Payments based on a rate 2 percentage points lower in year one and 1 lower in year two. Full payment begins in year three.
1-1 buydown
Payments based on a rate 1 percentage point lower for both of the first two years. Full payment begins in year three. This is different from a 1-0, which lasts just one year.
A DIFFERENT WAY TO NEGOTIATE
Ask for payment help—not just a price reduction.
When a seller or builder is open to concessions, a temporary buydown can be a powerful part of your offer. Instead of putting every negotiated dollar toward a lower price, you can ask them to fund lower payments during your first years in the home.
With a fully seller- or builder-funded buydown, that contribution is paid by them at closing—not added to your loan balance or charged to you as a separate buydown fee. You still plan for your down payment and other closing costs. Mike and your Realtor can work together on a request that fits the home, your loan, and the seller’s goals.
“Could we ask the seller to contribute toward a temporary buydown so my first payments are lower?”
That is a great conversation to have before writing your offer. We can compare a price reduction, closing-cost help, and a buydown side by side, then focus on what gives you the most value.
Help me build my offer strategy →How to use this calculator
- Enter your loan amount and full rate. Use what you expect to borrow, not the home’s price. Choose your repayment term.
- Choose a buydown. Start with 2-1, then compare the larger early reduction of 3-2-1 or the steady two-year reduction of 1-1.
- Add your other monthly costs. Taxes, homeowners insurance, mortgage insurance, and HOA help turn a loan payment into a household budget.
- Bring the contribution figure to Mike. We will explore how it could fit your offer and confirm which options your loan supports.
Behind the scenes, the calculator compares the normal fixed-rate loan payment with payments calculated using each year’s reduced rate. It multiplies each monthly difference by 12 and adds those amounts to estimate the upfront contribution. It uses the original loan amount and full term for each comparison.
Questions homebuyers ask
Who pays for a temporary buydown?
This calculator focuses on negotiating seller or builder funding. If they agree to cover the full amount, they supply the money at closing. Mike checks how that fits the available seller-credit allowance and any other credits you are using.
Can a buydown help me qualify for a more expensive home?
Its main benefit is breathing room in your early budget. Qualification is based on the full payment, so we start with a home you can comfortably carry after the temporary help ends. Then we explore how much early payment relief we can build into your offer.
Is this better than asking for a lower price?
It depends on your priority. A lower price reduces what you borrow; a buydown concentrates the benefit into the first few years. Bring Mike the home price and any seller incentive, and we can compare both approaches in dollars.
What if I refinance or sell before the buydown ends?
We can review your options when the time comes. The buydown agreement explains how unused funds are handled at payoff, often by reducing the payoff amount. Plan around the full payment today; a future refinance can be another opportunity if it makes sense then.
Can I use this with a VA, FHA, or conventional loan?
Temporary buydowns are available with many conventional, FHA, and VA loan programs. The schedules and funding choices vary by program and lender. Tell Mike which loan you are considering and we will match the strategy to the options available for your purchase.
Let’s turn the numbers into an offer strategy.
Buying in Kansas or Missouri? Bring Mike the home you like, the payment you want to explore, and any seller or builder incentive. We will talk through how to put those pieces together.
Talk through my buydown options →