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Rate Buydown Calculator
Show clients what a temporary buydown costs, and check if seller concessions cover it.
$
Base Loan: $540,000 · LTV: 90.0%
3.5%10%20%25%50%
Total Buydown Cost
$12,586
2.1% of price
Max Conventional Concession
$36,000
6% (LTV 75.01–90%)
Full Note Rate
7.000%
Year 3+ payment
Year 1 Payment
$2,899/mo
vs $3,593/mo full
Buydown cost of $12,586 is within the Conventional concession limit of $36,000, seller has $23,414 in remaining concession room.
2-1 Buydown Schedule
Year 15.000%
Monthly P&I
$2,899
Mo. Subsidy
$694
Annual
$8,326
Year 26.000%
Monthly P&I
$3,238
Mo. Subsidy
$355
Annual
$4,261
Year 3–307.000%
Monthly P&I
$3,593
Mo. Subsidy
—
Annual
—
| Year | Rate | Monthly P&I | Monthly Subsidy | Annual Subsidy |
|---|---|---|---|---|
| Year 1 | 5.000% | $2,899 | $694 | $8,326 |
| Year 2 | 6.000% | $3,238 | $355 | $4,261 |
| Year 3–30 | 7.000% | $3,593 | — | — |
Max Seller Concession Cheat Sheet
Conventional9%
LTV Range
≤ 75%
This Deal
$54,000
Owner-occupied, 2nd home
Conventional6%
LTV Range
75.01–90%
This Deal
$36,000
Owner-occupied, 2nd home
Conventional3%
LTV Range
> 90%
This Deal
$18,000
Owner-occupied, 2nd home
FHA6%
LTV Range
Any
This Deal
$36,000
Includes closing costs, prepaids, buydowns
VA4%
LTV Range
Any
This Deal
$24,000
Concessions only; seller can also pay all closing costs
| Loan Type | LTV Range | Max Concession |
|---|---|---|
| Conventional | ≤ 75% | 9% |
| Conventional | 75.01–90% | 6% |
| Conventional | > 90% | 3% |
| FHA | Any | 6% |
| VA | Any | 4% |
Highlighted row = your current deal's applicable limit
Buydown Scenarios vs. Concession Limit
| Buydown Type | Est. Cost | % of Price | Max Allowed | Status |
|---|---|---|---|---|
| 3-2-1 | $24,761 | 4.1% | $36,000 | Fits |
| 2-1 (selected) | $12,586 | 2.1% | $36,000 | Fits |
| 1-0 | $4,261 | 0.7% | $36,000 | Fits |
Disclosure: This calculator is for educational purposes only. Concession limits shown are general guidelines, actual limits may vary based on occupancy type, number of units, and lender overlays. Consult program guidelines before advising clients. Not a commitment to lend. Contact RJ Bennett, CMA™, NMLS #2058397, Canopy Mortgage for a personalized quote.