Free Calculator
See what a 2-1 buydown does to your first two years of payments — and what the buydown costs.
A 2-1 buydown lowers your rate by 2% in year 1 and 1% in year 2, then returns to the note rate. The cost (often paid by the seller or lender) equals the total payment savings over the two years. Principal & interest only.
QUICK ANSWER
Enter your loan amount and note rate to see your year-one and year-two payments and the total cost of a 2-1 buydown. That cost equals the payment savings over the two years and is typically paid by the seller or builder at closing. For a permanent rate reduction instead, see whether mortgage points are worth it.
A 2-1 buydown temporarily reduces your interest rate — 2% lower in year one, 1% lower in year two — before settling at the full note rate in year three. The cost equals the two years of payment savings and is often negotiated as a seller or lender credit. It's a way to ease into payments or use seller concessions. Read what is a 2-1 buydown and is a buydown worth it.
There are two very different ways to lower your rate, and this calculator helps you compare them. A temporary buydown — like a 2-1 buydown — cuts your rate 2% in year one and 1% in year two before settling at the note rate. It's frequently seller-paid and makes sense when you expect to refinance as rates fall. Permanent points (discount points) buy the rate down for the entire life of the loan.
The key question is break-even: permanent points typically pay for themselves in about 3–5 years, so they favor buyers who'll keep the loan a long time. A temporary buydown favors buyers who want lower payments now and plan to refinance soon. Enter your numbers to see the up-front cost against the monthly savings — then we'll tell you which structure (and who pays for it) fits your plan.
It can be, especially when the seller pays for it and you expect to refinance within a couple of years as rates ease. You get materially lower payments in years one and two. If you plan to keep the same loan for a decade, permanent points usually deliver more total savings.
Either side can. In a buyer's market, sellers and builders often fund a temporary buydown as an incentive — which can be worth more to you than a price cut. Buyers can also pay for permanent points. We help structure whichever is cheaper for your situation.
A temporary rate reduction: 2% below your note rate in year one, 1% below in year two, then the full rate after. It lowers your early payments.
Often the seller or builder as a concession, sometimes the lender. The cost equals the total payment savings over the two years.
It depends on how long you'll keep the loan. Short term, a 2-1 buydown helps; long term, permanent points may win. We'll compare both.
We shop 20+ lenders to beat the estimate. Free quote, no credit pull to start.