Approximate Same-Payment Buying Power at the Lower Rate
+$0
Using the same estimated monthly housing payment.
Illustrative estimate only. This calculator is not a loan quote, preapproval or commitment to lend.
Listing tax and HOA data may be missing, stale, formatted differently or reflect prior assessments.
New-construction taxes may reflect land or an incomplete assessment. Homeowners insurance and conventional PMI
are estimates unless manually entered. FHA mortgage insurance, VA fees, discount-point pricing, seller-paid costs,
lender credits, taxes, insurance, HOA dues, credit, debt-to-income requirements and loan-program rules can change
the result. Discount points do not reduce a mortgage rate by a guaranteed amount. Confirm all figures with a
licensed mortgage professional, insurer, closing attorney/title company and applicable taxing authority.
Quillie Real Estate TEAM • Metro Atlanta
What a Buydown Buys You
Same payment. More home.
A permanent rate buydown lowers your interest rate for the
life of the loan. If a lender qualifies you at the lower rate,
the same monthly housing budget may support a higher home price.
$2,800/month
housing budget •
10%
down •
30-year
fixed
7.50%
No buydown
$445,000
6.75%
3 points
≈
$12,951
$480,000
+$35,000
more home
($480,000 − $445,000)
How a permanent buydown works
1
Pay points at closing
One point equals 1% of the loan amount.
In this example,
1 point ≈ $4,317
.
2
Your rate drops
The rate changes from
7.50%
to
6.75%.
Actual point pricing varies by lender and market.
3
You may qualify for more
A lower principal-and-interest payment can support
a larger loan amount within the same monthly budget.
When does the
$12,951
pay for itself?
On the lower-rate loan amount, the payment difference is
about
$219 a month
.
The estimated break-even is
about 5 years
.
After that point, the lower rate continues to reduce
principal-and-interest cost versus the higher rate,
assuming the loan is kept long enough.
Illustrative estimate only. This calculator is not a loan
quote, preapproval or commitment to lend. Taxes, homeowners
insurance, HOA dues, mortgage insurance, lender fees, credit,
debt-to-income limits, appraisal, property type, occupancy,
discount-point pricing and market conditions can change the
result. Discount points do not reduce interest rates by a
guaranteed amount. Confirm rates, points, payments, costs and
qualification requirements with a licensed mortgage
professional. Real estate brokerage services are separate
from mortgage lending services.