Temporary Buydown Calculator - John Adams Mortgage

Temporary Buydown Calculator

See how a 1-0 or 2-1 buydown lowers your payment in the first year or two, and how much it costs to set up.

Payments shown are principal and interest only. Property tax, hazard insurance, mortgage insurance, and homeowner’s association dues are additional obligations; your actual payment obligation will be greater.

Good to know

  • You qualify at the full note rate. The lower first-year payment is not used to qualify.
  • Your note rate doesn't change. The buydown funds cover part of each payment for the first year or two.
  • Who pays: usually the seller or lender as a credit at closing. Seller-paid buydowns count toward seller-concession limits.
  • If you sell or refinance early, unused buydown funds are applied or refunded as your buydown agreement specifies.
  • Program rules vary (Conventional, FHA, VA). Your loan officer will confirm eligibility, limits and restrictions.

Important information

1 Estimated Temporary Buydown Funding is the total of the monthly principal and interest reductions during the buydown period, compared with the payment at the full note rate. It is not a discount point and does not permanently lower the interest rate.

Availability subject to investor guidelines. Loans are subject to borrower qualification, including income, property evaluation and final credit approval. Additional restrictions may apply.

Start Your Application Questions? Contact your loan officer to see which option fits your purchase.

Representative example: A 2-1 temporary buydown on a 30-year fixed-rate conventional purchase loan with a purchase price of $625,000, a down payment of 20% ($125,000), a loan amount of $500,000 and an annual percentage rate (APR) of 7.360% would have an interest rate of 5.250% for year 1 (12 monthly payments of $2,761.02), 6.250% for year 2 (12 monthly payments of $3,078.59), and 7.250% for years 3–30 (336 monthly payments of $3,410.88). Estimated Temporary Buydown Funding for this example is $11,785.80. Assumes a 780 credit score and no discount points. Rate and APR as of 10/07/2026 and subject to change.

For educational purposes only; not a Loan Estimate, offer, or commitment to lend. Payments shown are principal and interest only. Property tax, hazard insurance, mortgage insurance, and homeowner’s association dues are additional obligations; your actual payment obligation will be greater. All loans subject to credit approval, program guidelines, and property eligibility.
Staunton Financial, Inc. d/b/a John Adams Mortgage, NMLS #140012.
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