Refinance buydown vs. lender credit: see the real math
Someone pitched you a temporary buydown on your refinance? Plug in the numbers. This shows what the buydown actually costs — and what the same rate could do for you instead.
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In the deals we run, the credit typically lands a few thousand above what the buydown costs. Adjust to model your scenario — your real figure comes from a live quote.
The buydown they’re pitching
Temporary payment relief, funded by the rate
Real payment (note rate)—
Year 1 payment—
Year 2 payment—
Then snaps back to—
—
Total cost of the buydown. It sits in escrow, lowers your payment for the teaser years, then runs out.
The Forest Hills approach
The same rate — the money working for you now
Long-term payment—
Equivalent buydown cost—
Extra credit on top—
—
Lender credit put to work now — applied to prepaid interest & escrow (sets up a skipped payment), with any excess as cash at closing or a principal curtailment.
Enter your numbers above to see the comparison.
Get your real numbers from MattThis calculator is an educational estimate, not a loan offer, rate lock, or commitment to lend. Buydown cost is calculated using the standard payment-difference method and assumes a fixed-rate loan; it excludes taxes, insurance, and closing costs. Actual rates, lender credits, and the use of those credits depend on current market pricing, your credit profile, and your specific scenario. Contact us for a personalized quote. Forest Hills Mortgage · Matt Mergo, NMLS #563819. Equal Housing Lender.