REAL NUMBERS • REAL OPTIONS

Temporary Buydown Calculator

Compare temporary buydown scenarios, estimated payments and the funds needed for buydown — all in one place.

mtg@primisbank.com
443-MTG-LEND
www.MTGLend.com

$Mortgage Team Garcia$

Loan details

Purchase price

Down payment

Enter as a percentage.

Loan term

Note interest rate

Enter the current note rate for this scenario.

Buydown structure

Optional monthly taxes + insurance + HOA + MI

Does not affect the buydown subsidy. Included only to illustrate estimated total monthly housing payment.

Realtor Aid for Concessions

Seller concession available

Calculated concession: $15,000

Enter the dollar amount the seller is offering toward eligible buyer costs. Program contribution limits still apply.

Compared with estimated buydown cost$0

Seller concession used for buydown0%

Applied to buydown$0

Potentially remaining*$0

*Remaining seller concession may potentially be available for other eligible buyer closing costs or prepaids, subject to loan-program, investor, and interested-party contribution limits.

Maximum Seller Contribution Guide

Quick reference for purchase transactions

Conventional Fannie Mae / Freddie Mac

Primary / 2nd home · LTV > 90%3%

Primary / 2nd home · LTV 75.01–90%6%

Primary / 2nd home · LTV ≤ 75%9%

Investment property · any LTV2%

FHA HUD

Interested-party contributions6%

Up to 6% of sales price; includes temporary and permanent rate buydowns.

VA Department of Veterans Affairs

Seller concessions4%

Up to 4% of reasonable value. Seller-funded temporary buydowns count toward this 4% cap. Normal closing costs and discount points may be treated separately under VA rules.

Agency limits are a quick reference only and do not override actual eligible costs, loan-program, investor, property, or transaction requirements. Conventional limits are financing-concession limits and may differ from customary seller-paid costs. Confirm current guidelines before structuring an offer.

Sources: Fannie Mae Selling Guide B3-4.1-02 · Freddie Mac Guide 5501.6 · HUD Handbook 4000.1 · VA Temporary Buydowns / Pamphlet 26-7

Method: the subsidy equals the difference between the full note-rate P&I payment and the reduced-rate P&I payment for each buydown year, multiplied by 12 months.

Estimated buydown 2-1

Base loan amount$0

Full-rate monthly P&I$0

Full estimated payment*$0

Period	Illustrative buydown rate*	Monthly P&I	Monthly subsidy	Annual subsidy

Estimated total buydown funds

Estimated amount used to fund the temporary buydown subsidy.

Important: This calculator is a user-directed educational tool for illustrative purposes only. It does not quote or advertise an available interest rate, APR, loan program, or credit offer. Any note rate entered is supplied by the user solely to model a hypothetical scenario. Temporary buydowns do not change the loan note rate; the lower displayed rates are used only to illustrate the payment subsidy during the buydown period. Borrowers generally must qualify using the full note rate. Taxes, homeowners insurance, mortgage insurance, HOA dues, prepaid items, closing costs, lender fees, and APR are not included unless specifically entered above. Actual eligibility, seller-contribution limits, payment amounts, available programs, and closing figures vary by loan program, investor, property, and transaction. All loans are subject to credit approval and product guidelines. Other terms and conditions may apply. This is not a commitment to lend or a Loan Estimate.

*Illustrative buydown rate reflects the note rate less the applicable temporary subsidy for payment-calculation purposes only; it is not the loan note rate.

Tony Garcia — NMLS #224036 | Jessica Garcia — NMLS #1470022
Primis Mortgage Company (“Primis Mortgage”) is a subsidiary of Primis Bank, a Member FDIC. Primis Mortgage NMLS #1894879. Equal Housing Lender.