Purchase strategy
See what a 2-1 buydown does to year-one payment
Temporary buydowns can improve affordability early—but they are not free magic. Model 2-1 and 1-0 structures alongside your base payment before you accept seller or builder credits.
Why buydowns get oversold in marketing
- Year-one payment savings distract from full-term cost and who funds the buydown.
- Buyers confuse temporary payment relief with a permanent lower rate.
- Seller-funded vs lender-paid buydowns have different rules and limits.
What the buydown analyzer clarifies
- Select 2-1 or 1-0 buydown types on the buy-home path.
- See early-year payment vs standard amortization framing.
- Discuss funding and permanence with your loan officer—not just the listing agent.
What this calculator shows you
Year-by-year payment framing with 2-1 or 1-0 buydown selected
Comparison to non-buydown payment for the same price and rate
How buydown choice interacts with down payment and concessions
Strategy notes on who typically funds the buydown
Example scenario
Example: 2-1 buydown on a $650k purchase
6.75% note rate with 2-1 buydown selected—year one and two payments reduced per buydown schedule.
- Year 1 payment (illustrative)
- Lower than base*
- Year 3+ payment
- Returns to full amortization*
- Buydown type
- 2-1 modeled
Illustrative only. Run your own numbers in the analyzer—results depend on your inputs and program.
Run this scenario type →Ready to model your deal?
Your path is preselected. Enter your numbers, then unlock a Playbook Report for your strategy conversation.
Model buydown on buy-home pathFrequently asked questions
Does a buydown lower my rate forever?
No. Temporary buydowns reduce payments in early years via a subsidy account, then payments step up. Confirm structure on your loan estimate.
Who pays for the buydown?
Often seller, builder, or borrower via pricing. Funding affects what is negotiable—your loan officer explains allowable sources.
Is a buydown better than a price reduction?
Depends on hold period, cash available, and program. Model both in separate scenarios and compare net cost with your advisor.
Related calculators
Important disclosures
Estimates are for educational purposes only and are not a loan estimate, commitment to lend, or guarantee of terms. Calculators and reports do not constitute financial, tax, or legal advice. Only a licensed loan officer can provide official quotes, disclosures, and approval to lend. Equal Housing Lender.