01
Funds are set aside
A pre-calculated amount is placed in an account at closing. Depending on the loan and transaction, it may be paid by a seller, builder, lender, or buyer.
A payment strategy worth understanding
Make room in your first years at home.
A temporary buydown can reduce your monthly payment during the early years of your mortgage—so you can settle in with more breathing room.
✓ Compare payment paths
✓ See the full cost clearly
Watch the quick overview
See the strategy in action, then plug in your own numbers below.
Your numbers, in focus
Temporary buydown savings calculator
Adjust the inputs to view an illustrative payment path. Your rate stays the same—the buydown helps cover part of the payment difference early on.
A simple sequence
How a temporary buydown works
It’s a defined, upfront arrangement—not a change to the rate you qualify at.
02
Early payments are reduced
The account makes up the difference between your note-rate payment and the reduced payment during the agreed temporary period.
03
Your full payment resumes
When the temporary period ends, principal-and-interest payments return to the amount based on your original note rate.
Eligibility and program details vary. A loan professional can help you compare options for your specific situation.
Clear answers, no jargon
Questions buyers often ask
Temporary buydowns can be useful when they align with your purchase plan. Here are a few good places to start the conversation.
Let’s walk through your numbersWho can cover the cost of a buydown?
Depending on the loan program and transaction terms, the buyer, seller, builder, or lender may contribute. The details should be reviewed with your loan professional.
Is a buydown the same as discount points?
No. Discount points generally reduce the interest rate for the life of the loan. A temporary buydown changes the payment for a limited time while your original note rate remains in place.
Can I refinance during the buydown period?
Refinancing may be possible if you qualify and it makes sense for your goals. How any remaining buydown funds are handled depends on the loan terms and closing process.
Which loan programs can use a temporary buydown?
Program availability and requirements vary. An advisor can review the options that may be available for your occupancy, property, and financial profile.
What should I compare before deciding?
Consider the upfront cost, the payment after the temporary period, how long you expect to keep the loan, and whether the strategy fits your broader financial plan.
Your NEO guide
Next step: make it personal
A calculator is a start.
A real conversation brings it home.
Every purchase has its own moving pieces. Bring your purchase plan, rate estimate, and questions—and we’ll help you see the options more clearly.
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