Temporary Buydown Calculator
See how a temporary rate buydown might reduce your monthly mortgage payment
A temporary buydown allows you to lower your monthly mortgage payment for a set timeframe to free up extra cash. Starting with a lower monthly payment may give you more home choices, enable you to pay for new furniture or renovations, and more.
Use this tool to discover the power of a temporary mortgage buydown. Select your terms and fill in the requested details.
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Understanding how a temporary rate buydown may lower your monthly mortgage payment
How to get a lower mortgage interest rate with a temporary buydown
With a temporary mortgage buydown, funds are deposited into an escrow account by the seller or another party. These funds are then used to pay a portion of your interest for a limited time at the beginning of your mortgage.
Who pays to temporarily buy down your interest rate?
Usually a seller or homebuilder will pay the buydown as an incentive to sell the home. A lender can also pay the buydown. Guild Mortgage has several lender-paid temporary buydown programs which are explained in more detail below.
How do temporary rate buydown options differ?
With a temporary mortgage buydown, funds are deposited into an escrow account by the seller or another party. These funds are then used to pay a portion of your interest for a limited time at the beginning of your mortgage.
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What happens at the end of the buydown term?
When your temporary rate buydown period ends, you’ll transition to the original fixed interest rate for the remainder of your mortgage without changing the term of the loan.
What type of homes qualify?
Temporary rate buydowns are for primary residences only, not investment properties or second homes.
Temporary rate buydown loan types
You may be able to use a temporary buydown with standard Conventional, FHA, USDA, VA or Jumbo* loans. We also offer a variety of temporary buydown programs where we will pay some or all of the buydown for you:
- Payment Advantage: we’ll pay 1% of your interest rate for one year
- Payment Advantage Plus: the seller pays 2% of your interest rate for the first year, and we’ll pay 1% of your interest rate for the second year
- 1% Down Payment Advantage: you pay only 1% down, we’ll pay 2% down and 1% of your interest rate for one year
Learn more about temporary buydowns or connect with us to find out your options
Disclaimer: This calculator is offered for illustrative and educational purposes only and it is not intended to replace a professional estimate. Calculator results do not reflect all loan types and are subject to individual program loan limits. All calculations and costs are estimates and therefore, Guild Mortgage (“Guild”) does not make any guarantee or warranty (express or implied) that all possible costs have been included. The assumptions made here and the output of the calculator do not constitute a loan offer or solicitation, or financial or legal advice. Please connect with a Guild loan professional for a formal estimate. Every effort is made to maintain accurate calculations; however, Guild assumes no liability to any third parties that rely on this information and is not responsible for the accuracy of rates, APRs or any other loan information factored in the calculations.
*Jumbo temporary buydowns are limited to 2 years and can be paid by either the seller or lender.
Seller, builder, or third-party participation may be required to provide credit towards rate buydown. Borrower must meet program eligibility and qualify based on the note rate of the program selected. All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.