Seller strategy • Buyer payment planning

Before You Reduce the Price, Consider a 2-1 Buydown.

Explore how a temporary interest-rate buydown can lower a buyer's principal-and-interest payment during the first two years, while potentially helping a seller preserve the asking price.

Amy Cain Tarr Mortgage Loan Professional • NMLS 551911 Call 336-479-2101 • applywithamy.com

1. Enter the scenario

Loan amount ($)

Mortgage amount after the down payment.

Full note rate (%)

Loan term

Price reduction to compare ($)

Illustrative seller price reduction, not a loan quote.

This estimates principal and interest only. Taxes, homeowners insurance, mortgage insurance, and HOA dues are not included.

2. Estimated monthly payment

Year 1

5.25% rate

$0 savings per month

Year 2

6.25% rate

$0 savings per month

Year 3+

7.25% full rate

Regular payment

Estimated total buydown subsidy

Payment savings over the first 24 months

3. Estimated buydown funding

Period	Monthly payment savings	12-month total
Year 1	$0	$0
Year 2	$0	$0
Total	–	$0

4. Buydown vs. price reduction

Estimated buydown subsidy

Seller funds eligible payment subsidy.

Hypothetical price reduction

Asking price is reduced by the entered amount.

Difference in estimated cost

Buydown subsidy is lower than the price reduction.

A price reduction can also change the buyer's loan amount, down payment, and other costs. This simplified comparison does not calculate full seller net proceeds.

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How a 2-1 buydown works

Year 1: the payment is calculated at two percentage points below the full note rate. Year 2: it is calculated one percentage point below the full note rate. Year 3 and beyond: the payment returns to the full note-rate payment.

Educational estimate only, not a loan offer or a binding buydown quote. Actual subsidy cost, eligibility, qualifying rate, and seller-concession limits depend on the loan program and lender. Confirm all figures with the lender before presenting them as final.