Price Reduction vs Buydown – Calculator

Price Reduction vs Buydown

Compare total cash out, equity built, and breakeven timing. Includes closing costs, maintenance, MI auto-drop, and exit costs.

Remember my last inputs

Prepared for State

Original Purchase Price

Loan Program

Interest Rate (No Buydown)

Down Payment %

Defaults: Conventional 3%, FHA 3.5%, VA/USDA 0%.

Loan Term (Years)

UFMIP / Funding / Guarantee Fee (%)

Buydown Type(s)

Tip: Hold Cmd/Ctrl (desktop) to select multiple.

$ Buydown Cost (Total)

$ Seller Credit

Price Reduction ($)

Permanent Rate Reduction (%)

Comparison Horizon (years)

Property Tax %

Home Insurance ($/mo)

HOA ($/mo)

Home Appreciation % / yr

Realtor Information (optional)

Name

Company

Title

License #

Phone

Website

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Price Reduction vs Buydown

Prepared for: -

State: -

Prepared on: -

Key Metric	Price Reduction	Permanent Buydown	2-1 Buydown	3-2-1 Buydown
Purchase Price	-	-	-	-
Loan Amount	-	-	-	-
Down Payment	-	-	-	-
Base Rate	-	-	-	-
Interest Rate	-	-	-	-
Year 1 Rate	-	-	-	-
Year 2 Rate	-	-	-	-
Year 3 Rate	-	-	-	-
Year 1 Monthly Payment	-	-	-	-
Year 2 Monthly Payment	-	-	-	-
Year 3 Monthly Payment	-	-	-	-
Final Payment	-	-	-	-
Total Payment (5 yrs)	-	-	-	-
Total Savings vs Reduction	-	-	-	-

Up-Front Cost Difference

Buyer cash to close comparison

—

vs Price Reduction

Monthly Payment Difference

Average monthly savings

—/ mo

Average across first 3 years

Total Savings After 5 Years

Cumulative payment savings

—

vs Price Reduction

Breakeven Point (Months)

When buydown pays for itself

—

From loan start date

Visual Comparison of Buydown vs Price Reduction

Monthly Payment by Year

Cumulative Savings Over Time

Year-by-Year Summary (1 – 5 Years)

Year	Price Reduction	Permanent Buydown	2-1 Buydown	3-2-1 Buydown

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Eddie Rosales

Sun West Mortgage Company, Inc.

Branch Manager

NMLS # 247465

Phone: (562) 284-1040

Email: [email protected]

Website: eddierosales.com

This illustration is for discussion purposes only and not a commitment to lend. Figures are estimates and subject to change. Consult your licensed loan officer for exact terms, eligibility, and disclosures appropriate to your state and program.