Run the numbers on a purchase, refinance, home equity loan, or debt consolidation.
Compare temporary buydown payments and see what the subsidy costs.
A temporary buydown lowers your rate for the first years of the loan. The seller, builder or lender usually pays the cost up front, held in an escrow account that makes up the difference each month.
Cost of the buydown (subsidy)
$9,104
| Year | Rate | Payment | Saved / yr |
|---|---|---|---|
| Year 1 | 4.500% | $2,027 | $6,018 |
| Year 2 | 5.500% | $2,271 | $3,085 |
| Year 3+ | 6.500% | $2,528 | — |
Principal and interest only. You qualify at the note rate, and your payment rises to the full note-rate payment once the buydown ends.
* This estimate is provided for illustrative and informational purposes only and does not constitute a loan approval or commitment to lend. Actual rate, APR, and payment will depend on your credit profile, loan program, and market conditions at the time of rate lock. 1st 2nd Mortgage Co. of N.J., Inc. — NMLS # 115981.