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2/1 Buydown Cost Mortgage Calculator
A buydown helps lower your mortgage payment during the first few years of your loan.
It gives you a smoother start by reducing your interest rate, and your monthly payment, right when you're getting settled into your new home.
With Rate Relief by Churchill Mortgage, you’ll get 24 months of reduced mortgage payments at no cost to you.
$1,234.00
Buydown Cost
$X,000 paid by third-party, $X00 remaining cost balance.
* This calculator is being provided for educational purposes only. The provided values for interest rates are examples only and do not reflect Churchill Mortgage Product terms & offers. The results are estimates and are based on the information you provided and may not reflect Churchill Mortgage Product terms. The information cannot be used by Churchill Mortgage to determine a customer's eligibility for a specific product or service. Churchill Mortgage is not responsible for the content, results, or accuracy of information.
These calculations are hypothetical examples designed for illustration purposes only. Rates and payments are for example purposes only and do not reflect currently available rates. Not an offer to lend. Principal and interest only. Taxes, insurance, and HOA are only estimates based on the information you have provided. Consult a Home Loan Specialist for more specific information regarding payments, terms, etc.
How the buydown calculator works:
A buydown helps lower your mortgage payment during the first few years of your loan. It gives you a smoother start by reducing your interest rate, and your monthly payment, right when you're getting settled into your new home.
Think of it as breathing room.
With a 2/1 buydown, your interest rate goes up slowly over time, like this:
- Year 1: Your rate is 2% lower than your full loan rate. That means much lower monthly payments right away.
- Year 2: Your rate is 1% lower than your full rate. Payments go up a bit, but still lower than normal.
- Year 3 and on: Your rate goes to the full amount for the rest of the loan.
It’s a great option if you expect your income to grow or just want a little relief early on.
The goal? To help you ease into homeownership with less stress and more peace of mind.
Use Cases for Mortgage Calculators
Determine Savings OpportunitiesThis calculator shows how much money you could save with a buydown.
By lowering your interest rate for the first few years, your monthly payment drops, and that can mean big savings.
It helps you see how Rate Relief can make your home more affordable, right from the start.
Compare Savings / BenefitsShould you use a buydown, or just take a lower price on the home?
This tool helps you compare the benefits side by side.
You’ll see how much you could save in monthly payments vs. other options, so you can make the best choice for your family.
Someone has to cover the cost of the buydown, maybe you, the seller, or your lender.
This calculator shows how much that cost might be.
It helps you know what to expect and make sure the savings are worth it.
Buydown Program FAQs
Who/where offers buydown?
Buydowns are usually offered by mortgage lenders, like Churchill.
Sometimes a home builder or seller might offer one, too, especially if they want to help the home sell faster.
The goal is to make the first few years of your loan a little easier.
Who pays the buydown cost?
The buydown is paid for up front, kind of like prepaying interest.
It can be paid by the homebuyer, the seller, a builder, or even a lender.
Sometimes it's part of a special deal to make your home more affordable in the early years.
What are the benefits of a buydown contribution?
A buydown can make your monthly payment lower for the first few years.
That means more room in your budget, for furniture, savings, or just breathing easier.
It can help you settle in and feel at home without the pressure of a full payment right away.
What buydown options exist?
There are a few kinds, but the most common is the 2-1 buydown.
That means your rate is lower for the first two years, then it goes to your full rate after that.
Some programs also offer 1-year buydowns or even custom plans.
The calculator helps you see how each one could work for you.
How to get the Rate Relief program?
Getting started is easy, just reach out to a Churchill Home Loan Specialist.
They’ll walk you through how Rate Relief works and help you see if it’s the right fit for your budget and goals.
Every homebuyer’s story is different, and we’re here to listen and guide you, not rush you.
Let’s talk about your options and find a path that helps you feel confident and at home.
Who/where offers buydown?
Buydowns are usually offered by mortgage lenders, like Churchill.
Sometimes a home builder or seller might offer one, too, especially if they want to help the home sell faster.
The goal is to make the first few years of your loan a little easier.
- Rate Relief
- Rate Relief is Churchill’s special buydown program. It helps lower your interest rate for the first few years of your loan, making your monthly payments more affordable early on. It’s a way to ease into homeownership with less stress and more breathing room.
- Buydown
- A buydown is when someone pays money upfront to lower your interest rate for a set time, usually the first 1–3 years. It means smaller payments now, which can help you get settled into your new home more easily.
- Discounted Monthly Payment
- This is the lower monthly payment you get during the buydown period. Thanks to the lower interest rate, you pay less each month at the start of your loan. It gives you more room in your budget when you need it most.
- Interest Rate
- This is the cost you pay to borrow money for your home loan. It’s shown as a percent and affects how much your monthly payment will be. Lower interest = lower payments.
- Property Tax
- This is the tax you pay to your local government for owning a home. It helps pay for things like schools, roads, and parks. It’s usually part of your monthly mortgage payment.
- Homeowners Insurance
- This is insurance that protects your home from things like fires, storms, or theft. Most lenders require it, and it’s often included in your monthly mortgage payment. It’s one more way to keep your home safe.
Common Buydown Terms
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