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Temporary buydown calculator

Choose Conventional, FHA, VA, or USDA, then start with a loan amount or home price. See the base loan, applicable program fee, estimated note, mortgage insurance, payment path, and subsidy.

The mortgage rate does not change. A subsidy covers part of the early scheduled payment. The borrower must qualify using the lender's required payment.

Estimated subsidy$9,103.68View details ↓

Your scenario

Enter the loan details

Buydown structure

3-2-1 2-1 1-0

Start with

Loan amount only Home price + down

Loan program

Conventional FHA VA USDA

Loan amountBase loan before any financed upfront fee. Estimated home value optionalUsed only for PMI, FHA MIP, or a VA funding fee. The calculator derives LTV.

Mortgage interest rateUse the rate from the lender's quote. Loan termWhole years, up to 30. USDA uses 30 years.

Credit-score range needed for PMI above 80% LTVLoanSifter benchmark PMI is included after you choose the matching range.

Optional housing costsOnly if you want them in the payment

Program fees and mortgage insurance are calculated above. Leave these housing costs blank for principal, interest, and applicable program insurance only; they never change the subsidy.

Property taxes / year optionalAnnual amount. Home insurance / year optionalAnnual amount. HOA dues / month optionalMonthly amount.

Estimated subsidy required

$9,103.68

Estimate ready

Conventional · 2-1 · 30 years

Base loan$400,000.00

Estimated note$400,000.00

Upfront program fee$0.00

Mortgage insuranceNot included

Note-rate P&I$2,528.27

Known monthly subtotal$2,528.27

Monthly subtotals exclude property taxes, homeowners insurance, HOA dues, and mortgage insurance. The subsidy calculation is still complete.

Swipe sideways to see every column →

Temporary buydown payment schedule
Period	Payment-equivalent rate	Known subtotal	Monthly reduction	Subsidy

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Planning estimate only. Program fees and mortgage insurance use the same purchase assumptions as the payment calculator. FHA MIP and the USDA annual fee are illustrative first-year amounts and are held level in this payment-path display; actual amounts can change. Conventional PMI uses the documented LoanSifter benchmark. A temporary buydown does not change the note rate or loan terms. Eligibility, funding, contribution limits, and final figures must be verified for the specific transaction.

Read the result correctly

The early payment is lower. The loan rate is not.

3-2-1 buydownThe payment steps up over three years, then returns to the full note-rate payment in year four.

2-1 buydownThe payment-equivalent rate is two points lower in year one and one point lower in year two.

Program costsApplicable UFMIP, funding fees, guarantee fees, PMI, MIP, and annual fees are estimated from the program details you select.

Subsidy accountFunds set aside at closing cover only the principal-and-interest difference; monthly housing costs do not create subsidy.