Rate Buy Down Calculator
Calculate whether buying down your mortgage rate makes financial sense
Rate Buy Down Calculator
Estimate the cost and savings of buying down your mortgage rate
The full rate buy down calculator is available on our main calculator page
Go to Main CalculatorUnderstanding Rate Buy Downs
Pay upfront to lower your interest rate
Cost Per Point1% of Loan
Each point costs 1% of your loan amount
Rate Reduction~0.25% per Point
Each point typically reduces rate by 0.25%
Break Even5-7 Years
Typically takes 5-7 years to recoup costs
Example Costs
$300k Loan, 1 Point
Cost: $3,000 upfront
$400k Loan, 2 Points
Cost: $8,000 upfront
$500k Loan, 3 Points
Cost: $15,000 upfront
When It Makes Sense
- Planning to stay long-term
- You have extra cash upfront
- Want lower monthly payments
- Tax deduction benefit
Calculate Your Rate Buy Down
Use our mortgage calculator to determine if buying down your rate makes financial sense.
Start Calculating