Buydown Scenario Tool
Pick the program, the down payment, and the buydown structure. See the year-by-year payment and the exact seller-funded cost to make it happen, built for the offer table.
Set the Scenario
Payment by Year
| Period | Rate | P&I | Total PaymentTotal |
|---|
Cost to Fund This Buydown
The buydown fund is not an extra fee. It is a lump sum, usually paid by the seller, deposited into a dedicated escrow account at closing. Think of it as a prepaid card for the payment gap.
Each month during the buydown, the buyer pays only the reduced payment. The servicer pulls the difference from the escrow account so the lender still receives the full note-rate payment. When the account empties, the buyer simply pays the full payment on their own.
Two things buyers ask: if they sell or refinance before the period ends, the unused balance is credited toward the loan, so it is not lost. And the buyer qualifies at the full note-rate payment, so the buydown lowers early cash outlay, not the qualification bar.