TRU Mortgage Team

TRU Mortgage Rate Buydown Calculator

See how to use builder credits, seller credits, and leftover incentives to lower your upfront costs or reduce your mortgage payment.

Don't Waste Your Builder Credit

Before you use a credit to buy down your rate, see how much should go toward closing costs first — then compare permanent and temporary buydown strategies.

Built for homebuyers, new-construction buyers, Realtors, and loan officers.

Builder Credit Flow
Builder / Seller Credit
Start with the full incentive
Cover Costs First
Closing costs, prepaids, escrows
Use Remaining for Rate Strategy
6.99% → 5.99% example
Credit Remaining↓ Lower Payment

How This Calculator Helps

A simple 3-step strategy to make the most of your credit.

1

Start With the Full Credit

Enter the builder, seller, or lender credit being offered.

2

Cover Costs First

Apply the credit toward eligible closing costs, prepaids, escrows, and other allowable charges before buying down the rate.

3

Compare the Best Rate Strategy

Use the remaining credit to compare buydown options and see which one makes the most financial sense.

Loan & Credit Inputs

P&I estimates only. Taxes/insurance/HOA/MI not included.

$
%
$

Enter the full credit being offered by the builder, seller, or lender.

$

Think closing costs, prepaids, escrows, title, lender fees, and other eligible charges.

$13,000

Auto-calculated: Total Credit − Costs to Cover First.

Show scenarios:

Note P&I: $2,528.27/mo at 6.5% over 30 years.

Builder Credit Strategy

Total Credit → Costs Covered First → Credit Left for Rate Strategy

Total Credit
$25,000
Costs Covered First
$12,000
Credit Left for Rate Strategy
$13,000

You have $13,000 remaining to apply toward a temporary buydown. Compare the options below to see which structure fits the remaining credit best.

Side-by-Side Comparison

Each scenario shows the buydown cost vs. your remaining credit.

Best Use of Your Remaining Credit

Based on your remaining credit, the 2-1 Buydown is the strongest fit — it's fully covered and delivers the longest duration of payment relief (2 years).

This does not replace a full loan review, but it gives you a clear starting point for your builder-credit strategy.

1-0 Buydown

Year 1 savings: $257.12/mo

5.50%6.5%
Eligible — fully covered
Total Buydown Funds Required
$3,085
Credit Remaining After Buydown
$9,915
Year 1 @ 5.50%$2,271.16/mo
Year 2+ @ 6.5%$2,528.27/mo
★ BEST FIT

2-1 Buydown

Year 1 savings: $501.53/mo

4.50%5.50%6.5%
Eligible — fully covered★ Longest relief
Total Buydown Funds Required
$9,104
Credit Remaining After Buydown
$3,896
Year 1 @ 4.50%$2,026.74/mo
Year 2 @ 5.50%$2,271.16/mo
Year 3+ @ 6.5%$2,528.27/mo

3-2-1 Buydown

Year 1 savings: $732.09/mo

3.50%4.50%5.50%6.5%
Not eligible — shortfall $4,889
Total Buydown Funds Required
$17,889
Additional Funds Needed
$4,889
Year 1 @ 3.50%$1,796.18/mo
Year 2 @ 4.50%$2,026.74/mo
Year 3 @ 5.50%$2,271.16/mo
Year 4+ @ 6.5%$2,528.27/mo

Temporary vs. Permanent Buydown

A temporary buydown lowers the payment for the first few years. A permanent buydown may lower the rate for the life of the loan. The right choice depends on the credit available, how long you expect to keep the loan, and whether refinancing may be likely later.

Ready to See Your Real Numbers?

This calculator gives you a smart starting point. The next step is to verify your actual mortgage credit score, loan options, builder credit structure, and payment strategy.

Recommended First Step

Schedule a Consultation

Talk through your builder credit, buydown options, payment strategy, and next steps with Dan and the TRU Mortgage Team.

Schedule Consultation →

Start Your Application

Ready to move forward? Start your secure mortgage application so we can review your full loan options and qualification.

Start Application →
Paid Service

Check Your Mortgage Credit

Find out what your true mortgage FICO score is that we will use during your mortgage process.

Order Mortgage Credit →

Client-paid mortgage credit report. This is not a free consumer credit score.

Not sure which step to take? Start with a consultation and we'll walk you through your options.

Credits, costs, buydown eligibility, and allowable uses vary by loan program, lender, investor, builder, and state rules. This calculator is for educational scenario planning only and is not a commitment to lend. Mortgage credit scores may differ from consumer credit scores shown by free credit monitoring apps. Ordering mortgage credit does not guarantee loan approval, rate, or program eligibility.