Enter the price, down payment, term, your lender's quoted rate without a buydown and the rate with the buydown, plus the price cut the builder would give instead.
Builders often offer a choice: lower the price, or spend the same money buying down your mortgage rate. Which is better depends on your numbers and how long you'll keep the loan. Enter your own figures below — use the rates your lender quotes you.
Last updated November 6, 2026.
Enter the price, down payment, term, your lender's quoted rate without a buydown and the rate with the buydown, plus the price cut the builder would give instead.
The price cut lowers the loan amount at your normal rate; the buydown keeps the price but lowers the rate. The calculator shows the monthly principal and interest for each and the total paid over the years you choose. It leaves out taxes, insurance, CDD and HOA, which a price cut can also lower.
This is an illustration with the numbers you enter, not a loan offer or rate quote. A temporary (2-1 or 1-0) buydown changes only the first years; this calculator compares a permanent buydown. Ask your lender for a Loan Estimate for each option.
A buydown lowers your interest rate and payment; a price cut lowers the loan amount and can lower property taxes. Which costs less overall depends on how long you keep the loan.
No. A temporary buydown (like a 2-1) lowers the rate only for the first years; a permanent buydown lowers it for the life of the loan.
No. It's an illustration with the numbers you enter. Get a Loan Estimate from your lender for each option.