2-1 buydown
$0
Buydown cost (seller-paid subsidy)
- Plus closing costs
- Total seller credit
- Buyer's year-1 savings
For listing agents
Before the next price cut,offer a lower rate
Buyers shop by monthly payment. This tool shows your seller what a rate buydown would cost, what it does to the buyer's payment, and how it stacks up against simply dropping the price. Bring the numbers to your listing appointment, then bring the buyer to me.
1Enter the listing
Start with
your listing
Put in the price and a typical buyer's loan. Everything below updates as you type. These are planning estimates; the buyer's lender confirms eligibility, program rules and actual pricing.
2Price the buydown
What it costs
to buy the rate down
Pick a temporary buydown to see the seller credit it takes and the buyer's payment each year. The math follows Fairway's temporary buydown subsidy method: the payment difference for each reduced year, times twelve.
The buyer's payment, year by year
Principal & interest| Period | Rate | Payment | Monthly savings |
|---|
The buyer qualifies at the full note rate. The seller's credit is held in an account that covers the difference each month during the reduced years.
Lower the rate for the life of the loan
Planning rule of thumb: each 0.25% off the rate costs one point, or 1% of the loan amount.
Rate reduction
$0
Buydown cost (points)
- New rate
- Buyer saves every month
- Total seller credit with closing costs
Closing costs only
A credit toward the buyer's closing costs and prepaids, with no rate strategy. Useful when cash to close is the buyer's hurdle.
$0
Seller credit
- Modeled at
- Buyer's payment
3Compare for your seller
Same dollars,
three ways to spend them
Enter what the seller is ready to give up. A price cut barely moves the payment. The same money as a credit can buy the rate down for good or fund a temporary buydown, within what the loan program allows.
$
How to use it
at your next listing appointment
The seller nets about the same either way. The buyer gets a payment they can feel, and the sale closes at a stronger price, which protects the comps for the next listing on the street.
Try another scenario1
Run it before the price talk
Enter the listing and the reduction your seller is weighing. The comparison makes the case in one screen.
2
Keep the assumptions visible
Closing costs, rate and point pricing are all editable. Set them to what you see in your market so the seller trusts the numbers.
3
Advertise the credit
Put it in your remarks and flyers ("seller offering $10,000 toward a rate buydown"), then call me to confirm today's pricing.
Know the
concession limits
Each program caps what the seller can contribute, measured against the lower of the price or appraised value. The options above flag any credit that runs over.
| Loan type | Buyer down payment | Seller can pay up to |
|---|---|---|
| Conventional | Less than 10% | 3% |
| Conventional | 10% to 25% | 6% |
| Conventional | More than 25% | 9% |
| FHA | Any | 6% |
| VA | Any | 4%, plus normal closing costs |
Conventional limits shown for a primary residence; investment properties are capped at 2%. Jumbo limits vary by investor and are checked here against conventional rules.
Let's get it sold
Meet Becky Elder
I'm a mortgage advisor with BE Home Loans at Fairway Independent Mortgage. Send me a listing and I'll price a buydown for it the same day, so you walk into the seller conversation with real numbers.
Call or text
253-332-7882Email
becky.elder@home.com