CT Home Loans · Buydown Calculator
Lower the Payment.
Not Just the Price.
See how a seller-paid buydown compares to a price reduction on your next purchase.
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. This is to be used as only a calculator and not a rate quote of any kind. 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.
Call 602-492-3304Or email chris at cthomeloans.net · cthomeloans.net
Chris Theall · CT Home Loans
NMLS 392202 · Company NMLS 2257290 · Licensed in Arizona
Equal Housing Opportunity