Utah Mortgage Buydown Calculator
Calculate your temporary payment savings with a 2-1 or 3-2-1 buydown, and see exactly how much seller concession you need to negotiate.
Loan & Buydown Details
Seller Concessions
The total buydown cost ($8,193) is typically paid by the seller or builder at closing.
Total Seller Subsidy Required
This amount goes into an escrow account to subsidize your payments.
Standard Note Rate
6.500%
Year 1 Start Rate
4.500%
Payment Schedule
Year 1
Rate: 4.500%
$2,138/mo
Saves $451/mo
Year 2
Rate: 5.500%
$2,358/mo
Saves $231/mo
Year 3
Rate: 6.500%
$2,589/mo
Standard Payment
How Temporary Buydowns Work in Utah
What is a 2-1 Buydown?
A 2-1 buydown is a financing strategy where the mortgage interest rate is temporarily reduced for the first two years of the loan. In year one, the rate is 2% lower than the permanent note rate. In year two, it is 1% lower. By year three, the rate adjusts to the permanent, fixed note rate for the remaining 28 years.
Who Pays for the Buydown?
The cost of a temporary buydown (the difference between the reduced payment and the normal payment) is typically paid by the home seller or builder. This amount is collected at closing as a "seller concession" and placed into an escrow account. Each month, funds are drawn from this account to supplement your lowered payment.
Pros of a Buydown
- Lower initial monthly payments
- Easier transition into a new home
- Better alternative to price drops for sellers
Things to Consider
- Must qualify at the full note rate
- Payments will increase after the buydown period
- Requires negotiation with the seller
Negotiating a Buydown with Utah Sellers
In today's shifting Utah real estate market, many sellers and new construction builders are willing to offer concessions to help buyers afford their homes. A temporary buydown is often more appealing to a seller than a massive price reduction.
Our local Utah mortgage experts can help you structure a buydown offer and provide the exact numbers your real estate agent needs to negotiate effectively.
- Get exact seller concession amounts needed
- Compare 2-1 vs 3-2-1 buydown options
- Pre-qualify at the required note rate
- Connect with local builder incentives
Get a Custom Rate Quote
Connect with a local Utah expert for personalized rates.