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HOME PRICE :
DOWN PAYMENT : Term (months) :
Market RATE (Current Rates) : Amortize Period :
BUY DOWN the Rate to :
 
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Buying down the interest rate from 3.700 % to 3.700 % on a $75,000 mortgage over a 36 month term results in a new lower monthly payment of $229.49. The Buydown Cost of $0 includes present values (3.700 % 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 $229.49 given current market rates of 3.700 %. 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) 3.700 %   3.700 %  
Monthly Pmt ( Market Rate ) $229.49  
Bought Down Rate 3.700 %  
Monthly Pmt ( Buy Down/ Reduce Price ) $229.49   $229.49  
COST to Buydown Rate / Reduce Price $0   $0  

Figures are rounded to nearest dollar.
The above information is deemed reliable,
but is not guaranteed.