Chris Hageman
DeLex Realty
Buydown Comparison
What does buying the rate down actually save?
The rate the loan is written at. A temporary buydown never changes it.
A permanent buydown lowers the note rate for the life of the loan. A temporary buydown lowers the payment for a period only — the note rate never changes.
Permanent buydown and costs— pricing varies by lender and by market
The rate the loan would be written at after paying points. From a lender's pricing on the day.
As a share of the loan amount. Editable, because pricing varies by lender and by market.
The lender sets both the cost of a point and how much rate it buys. This tool holds the figures you enter — it has no pricing table.
Applied to each option separately — the table compares alternatives, not one combined deal.
A buydown can be funded by the buyer, the seller, the lender, or a builder. Who actually pays is negotiated, and what is permitted depends on the loan program.
Added to the permanent buydown cost. Use it when a lender quotes a figure that is not simply points.
Yes, substantially. Which structures are allowed, who may fund them, and how much may be contributed all differ by program and by lender.
First-year monthly payment
$2,132
Against $2,664 at the 6.365% note rate — a $532 monthly difference in year one, funded by a subsidy rather than by a lower rate.
Still to come
- Every year of the temporary payment, side by side
- What the subsidy actually costs
- The permanent option and its break-even month
- A printable comparison you can keep
Is buying the rate down worth it?
Unlock the full comparison, see what each rate costs up front against what it saves each month, and find how long it takes to get that cost back. You get your own link to it that stays open for 30 days — no account, no password.
- Each rate and payment compared directly
- What the points cost, and what they return
- How long before the cost is recovered
- A printable comparison you can keep
Two details and your full breakdown opens right here. No account, no password.
Every figure here is an estimate for discussion. It is not an offer, a quote, a loan approval, an appraisal, or a guarantee, and actual amounts will differ.
This is not a Loan Estimate, a Closing Disclosure, an escrow or settlement statement, a payoff statement, or a title commitment.
Nothing here is legal or tax advice. Consult a qualified professional about your circumstances.
Fees, charges, taxes, insurance, title and escrow costs, lender charges, and reserves vary by transaction, by provider, and over time. None of the amounts shown is required, standard, or customary.