Rate Buydown vs Waiting Calculator
Compare discount points, 2-1, 3-2-1 and 1-0 buydowns, buying now and refinancing later, and waiting to buy. See the payment and the total cost of each over the years you plan to stay. The rate starts at today's 30-year national average.
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How each option works
- Discount points: you pay about 1% of the loan per point to lower the rate for the life of the loan. Worth it when you keep the loan past the break-even month.
- 2-1 buydown: the rate is 2 points lower in year 1 and 1 point lower in year 2, then the full rate. The cost is the payment difference, usually paid by the seller or builder.
- 3-2-1 and 1-0 buydowns: the same idea over three years or one year.
- Buy now, refinance later: you lock in today's price and refinance if rates fall. You pay closing costs again, and a lower rate is never guaranteed.
- Wait to buy: you keep paying rent, and prices often rise while you wait. A lower rate on a higher price sometimes costs more.
Sellers in many markets pay for buydowns right now. Ryan and Megan negotiate seller credits on every purchase. See today's rates and forecasts.
Get your real rate, not an average
Ryan and Megan, Mortgage Bankers with The Federal Savings Bank, price your loan for your credit, down payment and home. No cost and no commitment.
Disclosures. Rates shown are national averages published by Mortgage News Daily (daily) and Freddie Mac's Primary Mortgage Market Survey (weekly), and the 10-year Treasury par yield from the U.S. Department of the Treasury. They are shown for education and comparison. They are not rates offered by Ryan Winslow, Megan Winslow or The Federal Savings Bank, and they are not a loan offer, a commitment to lend, a rate lock or a quote. Your interest rate and APR depend on your credit, loan amount, down payment, property type, occupancy, loan program and market conditions on the day you lock. Not all applicants qualify. Forecasts are third-party opinions and not predictions by Winslow Homes or The Federal Savings Bank. Mortgage services by The Federal Savings Bank, NMLS #411500, Equal Housing Lender. Ryan Winslow NMLS #2426605. Megan Winslow NMLS #2692933. NMLS Consumer Access.