2-1 buydown

Note rate never changes. Seller funds an escrow; the lender still gets full note P&I. Cost is the payment difference on the original balance — the number you tell the listing agent.

Seller concession

2-1 buydown

Purchase price

Down payment %

Term

Permanent note rate

Discount points

Added to the concession ask. 0 if 2-1 only.

Year 1 rate reduction

2.00% for a standard 2-1. 1.00% for a 1-0.

Year 2 rate reduction

1.00% for a 2-1. 0 for a 1-0.

Other seller credits

Loan program

Sets the typical concession cap only.

Tell the agent

Request $8,785 seller concessions. Y1 $1,956 | Y2 $2,192 | then $2,440

Year 1 subsidy fund: $5,808
Year 2 subsidy fund: $2,977
2-1 buydown cost: $8,785
Discount points $: $0
Other credits: $0
Total concession: $8,785
% of price: 2.20%
Typical max (program): $12,000
Over / (under) cap: -$3,215

Negative over/under means the ask is inside the typical cap. VA 4% is a flag for certain items — apply your overlay.

Borrower P&I

Year	Rate	Borrower P&I	Monthly subsidy	Seller funds
Year 1	4.500%	$1,955.81	$483.98	$5,807.73
Year 2	5.500%	$2,191.67	$248.12	$2,977.40
Years 3–30	6.500%	$2,439.78	$0.00	$0.00

With points

Same loan, bought-down note

Type the note rate that each point option actually locks. Par should match the permanent note on the left.

Par note %

1.000 note %

1.500 note %

2.000 note %

2.500 note %

Metric	Par	1.000 pt	1.500 pts	2.000 pts	2.500 pts
Year 1 P&I	$1,843	$1,760	$1,706	$1,654	$1,601
Year 2 P&I	$2,072	$1,985	$1,927	$1,871	$1,815
Note P&I	$2,314	$2,222	$2,161	$2,102	$2,043
2-1 cost	$8,563	$8,390	$8,271	$8,150	$8,027
Points $	$0	$3,860	$5,790	$7,720	$9,650
Total concession	$8,563	$12,250	$14,061	$15,870	$17,677