How this calculator works
Break-even = points cost ÷ monthly payment savings. If you keep the loan past break-even, the buydown wins; sell or refinance before, and the cash was better kept.
Loans this applies to
Conventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.
2-1 Rate Buydown Loans
A 2-1 buydown temporarily reduces your mortgage rate, typically 2 percentage points below the note rate in year one, 1 point below in year two, then the full rate from year three.
First-Time Homebuyer Loans
First-time homebuyer loans are mortgage options with low down payments, typically 3% conventional, 3.5% FHA or $0 VA, often paired with state or local down payment assistance.
FAQ
Is the Points & Buydown Calculator free?
Yes. It is free, needs no sign-up and does not check your credit.
How accurate is the Points & Buydown Calculator?
It uses the same formulas lenders use, but results are estimates. Your actual terms come from your Loan Estimate or term sheet.
Estimates only, for educational use. Not a loan offer or commitment to lend.