Seller Credit & Buydown Calculator
Enter your numbers to see three ways a seller credit can lower your monthly payment: a price cut, a 2-1 buydown, or points.
Example numbers are filled in. Type over them with your own, then scroll down for your results.
Your results
How these numbers are figured
- Price cut: the credit lowers the purchase price. Your down payment stays the same, so the loan drops by the full credit.
- 2-1 buydown: the rate is 2% lower in Year 1 and 1% lower in Year 2, then returns to the note rate. The cost is the difference in principal & interest over those 24 months, paid by the seller credit.
- Points: one point costs 1% of the loan. The credit buys as many points as it can, and each point lowers the rate by the amount in the options above.
- Taxes and insurance, if you enter them, are the same in every option. Mortgage insurance, HOA dues and closing costs are not included.
- Payments are for a fixed-rate loan and are estimates.
For illustration only. This is not a loan offer, rate quote or commitment to lend. Actual rates, buydown availability, seller credit limits and costs depend on your lender and loan program. Teri Bindshedler is a REALTOR®, not a lender, and can connect you with trusted local lenders.