CT Home Loans · Buydown Calculator
See what buydowns cost, how they reduce monthly payments, and what sellers can contribute.
Loan Details
Buydown Type
Year 1 Payment
Full Rate Payment
At note rate for life of loan
Total Subsidy Cost
Year 1 Monthly Savings
vs. full rate payment
Seller Contribution Analysis
Year-by-Year Breakdown
| Year | Interest Rate | Full Payment | Subsidized Pmt | Monthly Difference | Annualized | Total Subsidy |
|---|
Same Seller Cost. Very Different Impact.
A price reduction of the same dollar amount saves a fraction of what the buydown saves per month.
Price Reduction
Better Option
Seller-Paid Buydown
Saved per month in Year 1
Disclaimer: These figures are estimates based on the inputs provided and are subject to change based on final loan amount and locked interest rate. Contribution limits are based on purchase price or appraised value, whichever is lower. Qualification is based on the note rate, not the reduced buydown rate. Contact CT Home Loans for a loan-specific analysis.
Seller Contribution Limits Reference
| Property Type | Down Payment | Conventional | FHA |
|---|---|---|---|
| Primary | Under 10% | 3% | 6% |
| Primary | 10% to 24% | 6% | 6% |
| Primary | 25% or more | 9% | 6% |
| Second Home | 10% to 24% | 6% | N/A |
| Second Home | 25% or more | 9% | N/A |
Based on purchase price or appraised value, whichever is lower.
Buydown Basics
- Funds are paid by the seller, builder, or lender. Not the buyer.
- DTI qualification uses the full note rate payment, not the reduced buydown payment.
- Available on primary residences and second homes. Not available on investment properties.
- Works with most conventional and FHA purchase loans.
- Subsidy funds are held in escrow and applied monthly to cover the payment difference.
Want this run on a specific home?
Send me the address and I will show you the exact payment breakdown.
Send Me a MessageOr email chris@cthomeloans.net · cthomeloans.net
Chris Theall · CT Home Loans
NMLS 392202 · Company NMLS 2257290 · Licensed in Arizona
