- Apply On Line - Apply Online Apply by Fax Arrange a Callback - Mortgage Resources - Rates Learning Centre Press Releases Industry News Glossary Legal Information Privacy Policy - Calculators & Tools - Amortization Finance your Purchase Mortgage Manager Schedule Investment Planner Buy Down Affordability Affordability Chart Rent vs. Own ---> Differential ---> Buy Down Calculator Compare an interest rate buydown with a Price Reduction. View the effect on housing affordability. HOME PRICE : DOWN PAYMENT : Term (months) : Market RATE (Current Rates) : Amortize Period : 5 Yrs 10 Yrs 12 Yrs 15 Yrs 18 Yrs 20 Yrs 25 Yrs BUY DOWN the Rate to :     Buying down the interest rate from 3.950 % to 3.950 % on a $75,000 mortgage over a 36 month term results in a new lower monthly payment of $244.87. The Buydown Cost of $0 includes present values (3.950 % discount rate) of : $0 for monthly payment differences and $0 for end of term balance differences. The home is now $0.00 per month more affordable to any potential puchaser.   With NO interest rate buydown, affordability could only be increased by reducing the home price to $100,000 (keeping at 25 % down payment) in order for the monthly payment to also be $244.87 given current market rates of 3.950 %. The cost of this is a price reduction of $0 Learn MORE about Interest rate buydowns by reading in the learning centre Interest Rate Buydown Or Price Reduction ? Interest Rate Buydown Program - $100,000 Home BUY DOWN PRICE REDUCTION Sale Price $100,000   $100,000   Down Payment at 25 % $25,000   $25,000   Mortgage Amount $75,000   $75,000   Term in Months 36   36   Market Rate (Cmpd Semi-Ann) 3.950 %   3.950 %   Monthly Pmt ( Market Rate ) $244.87   Bought Down Rate 3.950 %   Monthly Pmt ( Buy Down / Reduce Price ) $244.87   $244.87   COST to Buydown Rate / Reduce Price $0   $0	COMPARE RATES TERM OURS BANKS 6.mo 1yr. 3yr. 5yr. 4.45% 3.20% 3.95% 5.44% Quick Calculator
Back to Top     Figures are rounded to nearest dollar. The above information is for illustrative purposes only. We cannot guarantee its accuracy. Please contact your financial advisor for more specific information. Calculator powered by CanadaMortgage.com	Legal Information Privacy Policy