Payment and Rate Buydown Calculator

How It Works

Enter a price, down payment and rate to see your monthly payment. Then see what a seller credit does for you as a lower price, a permanently lower rate, or a 2-1 buydown. It's free, there's no sign-up, and nothing is saved unless you send it to Dave.

What a seller might offer toward your costs or your rate.

Check the county assessor for the home's current taxes.

Each point costs 1% of the loan. Ask your lender what one point buys today.

$3,027monthly payment with taxes, insurance and HOA
$2,702principal and interest
$325taxes, insurance and HOA per month
$427,500loan amount

What a $10,000 seller credit could do

OptionYear 1Year 2Year 3 on5-year savings
No credit
6.50% rate
$3,027$3,027$3,027$0
Price cut
Price $465,000; smaller down payment too
$2,970$2,970$2,970$3,413
Permanent buydown
2.34 points, about 5.92% for the life of the loan
$2,865$2,865$2,865$9,736
2-1 buydown
Costs $9,730; $270 of the credit left for closing costs
$2,491$2,752$3,027$9,730

Monthly payments include taxes, insurance and HOA. The highlighted row saves the most over five years. Estimates only, not a loan offer. Buydown pricing, loan limits and seller credit limits vary by lender and loan type, so confirm with your lender.

Send these numbers to Dave

Dave can help you decide which to ask a seller for, and how to write it into an offer. Your results are already filled in below.

If your question is about a specific home

Questions About Payment and Buydown Calculator

Is a price cut or a rate buydown better?

It depends on how long you'll keep the loan. A permanent buydown usually saves more per month for the same dollars, while a price cut also lowers your down payment and property taxes. The calculator compares them over five years.

What is a 2-1 buydown?

Your rate is 2 points lower in the first year and 1 point lower in the second, then returns to the full rate. The seller's credit pays for the difference up front.

How much does one point lower my rate?

One point costs 1% of the loan. What it buys changes with the market and the lender, often around a quarter of a percent. Ask your lender for today's pricing.

Is there a limit on seller credits?

Yes. Loan programs cap how much a seller can contribute, based on the loan type and down payment. Your lender will confirm the limit for your loan.

About These Estimates

The calculator uses standard 30-year fixed-rate mortgage math. It doesn't include mortgage insurance, which applies to many loans with less than 20% down. This is general information, not a loan offer or financial advice.