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How does a 2-1 buydown actually work?

A temporary buydown uses a seller or builder credit to pre-pay part of your interest, lowering the payment for the first year or two while you settle in. This tool shows the payment for each year of a 2-1, 1-0, or 3-2-1 structure, the total credit required — and the honest comparison everyone skips: what those same dollars as a price cut would save you monthly, forever. Your lender can price all three; now you'll know what to ask. Want the full story first? Read the plain-English buydown guide →

Temporary buydown (2-1, 1-0, 3-2-1)

A seller or builder credit pre-pays part of your interest, lowering the payment for the first years. See each year's payment and what the subsidy really costs.

Payment by year
$—

Total buydown cost (the credit needed)—
Same credit as a price cut would save—

Temporary buydowns are usually funded by seller or builder credits, not your cash. Compare against a permanent rate buy-down and a price reduction before choosing — your lender can price all three.

Educational estimate, not a loan offer or financial advice. Rates, taxes, and program rules vary — a licensed professional can turn these ranges into real numbers for your situation.

Want a human to look at your numbers? BuyerMath is built by Gavin Guthrie of The Mortgage Collective — a free 15-minute "where do I stand?" call costs nothing and isn't a test you can fail.

Explore BuyerMath →