See how much wealthier a rate buydown can make you. This tool keeps your total monthly housing payment the same as the par-rate loan — it just redirects the extra room a lower rate creates straight into principal, so you build equity faster instead of pocketing the difference.
| Year | Par Balance | Buydown Balance | Par Equity | Buydown Net Worth (net of cost) | Extra Wealth |
|---|
Estimates only, for illustration. Assumes a permanent rate buydown (the reduced rate applies for the full loan term) and that the entire monthly difference between the par-rate payment and the buydown payment is applied as extra principal to the buydown loan every month without interruption. Equity is based on principal paydown against the purchase price only — it does not include home price appreciation, taxes, insurance, HOA dues, or investment growth. Once the buydown loan is paid in full, its former monthly payment is counted as cash saved (held flat, not invested) for the remainder of the projection, since the par-rate loan is still being paid down during that time. Not a rate lock, credit decision, or commitment to lend. Actual rates, payments, and buydown costs depend on the borrower's final loan terms — confirm current figures before relying on this analysis with a client.
Let’s run these numbers against your actual loan scenario — no pressure, no obligation.