Help borrowers understand how a temporary payment subsidy can lower their initial monthly principal and interest payments—while keeping the permanent mortgage note rate unchanged.
Choose a structure and enter your loan details. The results update automatically.
Select a buydown option
$
Enter the principal balance
%
Annual fixed-rate assumption
ⓘBased on your uploaded 2-1 Excel calculator: the subsidy equals the difference between the full-note-rate payment and the temporary payment, multiplied by 12 months per buydown year.
Year-by-Year Payment Breakdown
Principal and interest only · Monthly savings are funded by the subsidy.
Payment period
Effective rate
Monthly P&I
Monthly subsidy
Annual subsidy
Total estimated buydown funds
$17,069.56
Monthly Payment Comparison
How the borrower's payment progresses toward the full note payment.
Blue bars show estimated monthly principal and interest for each period.
Understanding Your Selection
For a 2-1 buydown, the borrower's effective rate is 2 percentage points below the note rate in year one and 1 point below in year two. The full note payment begins in year three. Funds are deposited upfront to cover the difference.
Why Consider a Temporary Buydown?
01
Payment Flexibility Up Front
Provide lower required monthly principal and interest payments during the initial buydown period.
02
Strategic Seller Incentive
An eligible interested party may fund the subsidy at closing, subject to applicable contribution limits and program guidelines.
03
Predictable Payment Schedule
See the payment changes in advance and help clients plan for the full note-rate payment.
Important disclosures: This calculator provides illustrative estimates only; it is not a Loan Estimate, an APR calculation, a commitment to lend, or a guarantee of program availability. Payments shown are principal and interest only and exclude property taxes, insurance, mortgage insurance, HOA dues and other costs. Calculations assume a fixed-rate, fully amortizing loan and 12 monthly subsidy payments per buydown year, consistent with the attached reference spreadsheet. The note rate and the contractual mortgage payment do not change, and borrowers remain responsible for the full payment if subsidy funds are unavailable. Temporary buydowns are subject to program, agency, transaction, occupancy, funding-source and interested-party contribution requirements. Mega's published guidance documents 1-0 and 2-1 plans; the 3-2-1 option models a standard three-year buydown schedule for illustration only and must be separately confirmed with a Mega Account Executive.
