Mortgage calculators

Temporary Buydown Calculator

Compare your payments during a temporary buydown, estimate the subsidy needed, and see the full payment when the buydown ends.

The starting example uses an illustrative 7.5% interest rate. This is not a NewFed rate quote. Enter your quoted note rate and loan details for your comparison.

Loan details

Loan amount ($)Amount borrowed after your down payment.

Full note rate (%)Use your quoted interest rate, not APR. The 7.5% example rate is illustrative.

Loan term

Temporary buydown scheduleIllustrative schedules. A loan officer can confirm which options are available for your loan.

Add taxes, insurance and HOA costs

These costs are not reduced by the buydown.

Property tax ($ per year)

Homeowners insurance ($ per year)

Mortgage insurance ($ per month)

HOA fees ($ per month)

Your buydown comparison

Calculate your buydown to see each payment stage and the estimated subsidy funding.

Year 1 P&I

Borrower's monthly portion

Full P&I payment

Required by the mortgage note

Estimated subsidy

Funding for the temporary period

Payment schedule

Monthly borrower payments and payment relief by year
Period	Payment rate*	Monthly P&I	Monthly total	Monthly relief

*The payment-calculation rate illustrates the lower borrower payment. The actual note rate stays the same. P&I means principal and interest.

Subsidy funding by year

Additional monthly costs

Annual tax and insurance inputs are divided by 12 and rounded to cents. These estimates are held constant throughout the comparison.

Funding is calculated from the monthly payments rounded to cents, then summed across the buydown months. Your final funding amount follows the lender's buydown agreement and rounding convention.

How a temporary buydown works

Lower payments at the start

A 2-1 schedule calculates the borrower's payment using a rate two percentage points below the note rate in year 1 and one point below in year 2. A 1-0 schedule lasts one year; a 3-2-1 schedule lasts three.

The subsidy covers the difference

Funds set aside for the buydown supplement your payment so the full contractual principal-and-interest payment reaches the loan. This does not change the loan's note rate or original amortization.

Plan for the full payment

The temporary assistance ends after the selected period. Budget for the full payment shown in your results. Taxes, insurance and other property costs can also change over time.

Explore your buydown options

Connect with a NewFed loan officer to discuss availability, funding and a payment estimate for your situation.

Get a quote Find a loan officer

Calculator assumptions and disclosures

This tool provides educational estimates for fixed-rate, fully amortizing loans. It is not a rate quote, loan approval or commitment to lend. Example rates are not current NewFed pricing. Availability, contribution limits, funding sources and loan terms vary by program and lender requirements.

The reduced borrower payments use the original loan amount and original amortization term. The loan's actual note rate and contractual principal-and-interest payment remain unchanged. Qualification requirements are based on the applicable program; for conventional loans subject to Fannie Mae's temporary buydown rules, qualification uses the note rate without the temporary reduction.

The subsidy estimate is the sum of the differences between monthly principal-and-interest payments rounded to cents. Optional property costs do not reduce the subsidy and are held constant for this illustration. This calculator does not model adjustable rates, interest-only payments, extra principal payments, early payoff, refinancing, or disposition of unused subsidy funds. Final figures and treatment of unused funds are governed by your loan and buydown agreement.

Learn more: Fannie Mae's temporary buydown overview. NewFed Mortgage Corp. NMLS #1881. Equal Housing Lender.