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Rate Buydown
What it costs to buy a lower interest rate, and how long before the savings pay you back. Compare paying points with a 2-1 or 1-0 buydown.
When the points pay for themselves
Estimates only. Not a loan approval, commitment, or offer to lend. Loan payment here means principal and interest only.
Source: Freddie Mac Primary Mortgage Market Survey (PMMS). National average for the week of November 12, 2026. It is an average for conventional purchase loans, not an offer of credit and not an APR.
How we calculate this
- Points. A point is a fee paid to your lender at closing for a lower rate: one point costs one percent of the loan amount. The points pay for themselves at the payment where the monthly savings add up to what they cost.
- Your lender’s quote. How much one point lowers the rate comes from your lender. Pricing varies by lender and changes daily, so enter the two rates you were quoted.
- 2-1 and 1-0 buydowns. A lower payment for the first two years, or the first year, then the full payment. The cost at closing is the payments it saves. A temporary buydown gives back what it costs over the early years, and no more.
- Who pays. A buyer pays for their own points. A seller concession can go toward points and other closing costs.
- What is left out. Property tax, insurance and any mortgage insurance are the same under every option, so they are left out.
See the breakdown
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