3 views Mortgage Information Loan amount? $ Loan term (years)? Interest rate? % Buydown Information Buydown method? - Select -3/2/1 Buydown1/1/1 Buydown2/1 Buydown1/1 Buydown1/0 Buydown Third-party contribution? % Printer-friendly version Monthly Payment by Year Year 1 Year 2 Year 3 Year 4 Chart Table Total Buydown Period Expenditures Buydown Scenario Non Buydown Scenario Interest Paid Buydown Paid Principal Paid Total Expenditures Submit Mortgage buydowns allow borrowers to reduce their interest rate temporarily by paying an upfront fee, which lowers initial monthly payments; for example, a 3‑2‑1 buydown reduces the rate by 3% in the first year, 2% in the second, and 1% in the third before reverting to the full rate, while a 2‑1 or 1‑1 buydown provides similarly staged rate reductions over shorter periods, helping ease early cash flow and potentially improving loan qualification.