Mortgage Buydown Calculator
Loan Info
| Year | Rate | Payment | Monthly Savings | Annual Savings | APR |
|---|
Alpha
Subject to investor guidelines.
This calculator is intended for educational and estimation purposes only and should not be considered a commitment to lend. The payment amounts shown are estimates and do not include taxes, insurance premiums, or other applicable costs. Actual monthly payments will be higher. This tool does not constitute an offer to extend credit or a loan approval. For personalized estimates, please contact a Alpha Mortgage.
2Estimated monthly savings are based on the difference between reduced initial payments during the buydown period and the standard payment amount once the interest rate returns to its original level.
3A temporary buydown lowers the initial interest rate by up to 3%, typically adjusting upward by 1% annually until it reaches the original fixed rate. For example, a 3-2-1 buydown on a 30-year fixed-rate conventional loan with a purchase price of $572,000, a 20% down payment, and an APR of 7.178% would result in the following estimated monthly payments:
- Year 1: 4.125% – $2,772.20
- Year 2: 5.125% – $3,114.47
- Year 3: 6.125% – $3,475.53
- Year 4 and beyond: 7.125% – $3,853.67
This scenario assumes a credit score of 740+ and includes a cost of 0.051 points ($291.72) paid at closing. Rates are as of 7/21/2025 and are subject to change. All loans are subject to borrower qualification, including income verification, property evaluation, and final credit approval. Temporary buydowns must be paid by the seller or builder. Not all loan programs allow buydowns. Additional restrictions may apply. Payment estimates include principal and interest only and exclude taxes and insurance, which will increase the total monthly obligation. Contact your Loan Officer for full details.