What is a 1-0 temporary buydown?

A 1-0 buydown lowers your effective interest rate by 1% for the first 12 months of the loan. The difference between the full payment and your reduced payment is covered by a buydown fund, usually paid by the seller or builder as a closing credit. After year one, the payment returns to the full note-rate amount.

What happens if I pay the full payment during a 1-0 buydown year?

If you keep paying the full note-rate payment while the buydown fund covers part of it, the difference is applied directly to your principal every month for 12 months. That extra principal in year one compounds over the life of the loan, shaving months off your payoff date and saving thousands in interest — all without changing your budget.

How much is FHA mortgage insurance?

FHA loans include an upfront mortgage insurance premium of 1.75% of the loan amount (usually financed into the loan) plus an annual premium, commonly 0.55% for 30-year loans with less than 5% down, paid monthly. If you put down less than 10%, the annual premium lasts for the life of the loan.

Do VA loans have mortgage insurance?

No. VA loans have no monthly mortgage insurance. Instead, most borrowers pay a one-time VA funding fee (for example, 2.15% for a first-use purchase with less than 5% down) which is typically financed into the loan. Veterans receiving VA disability compensation are usually exempt from the fee.

What fees do USDA loans have?

USDA loans include a 1% upfront guarantee fee, typically financed into the loan, and an annual fee of 0.35% of the loan balance, paid monthly. USDA loans allow 0% down for eligible rural and suburban properties.

Run real numbers, not guesses

Mortgage Calculators

Estimate payments for conventional, FHA, VA, and USDA loans — including mortgage insurance and funding fees most calculators skip. Then go deeper: see how a 1-0 buydown or a few extra dollars a month can knock years off your loan.

Conventional Loan

Standard financing with PMI that drops off once you reach 20% equity.

Home Price ($)

Down Payment (%)

Interest Rate (%)

Term (Years)

PMI Rate (%/yr of loan)

Only applies under 20% down. Typical range 0.3%–1.0% depending on credit and down payment.

Property Tax (%/yr)

Home Insurance ($/mo)

HOA ($/mo)

FHA Loan

3.5% minimum down with flexible credit. Includes upfront (1.75%) and monthly FHA mortgage insurance.

Home Price ($)

Down Payment (%)

FHA minimum is 3.5%.

Interest Rate (%)

Term (Years)

Finance the 1.75% upfront MIP into the loan (most borrowers do)

Property Tax (%/yr)

Home Insurance ($/mo)

HOA ($/mo)

VA Loan

0% down for eligible veterans and service members. No monthly mortgage insurance — just a one-time funding fee (waived with VA disability).

Home Price ($)

Down Payment (%)

Interest Rate (%)

Term (Years)

VA Loan Usage

Funding fee exempt (receiving VA disability compensation)

Property Tax (%/yr)

Home Insurance ($/mo)

HOA ($/mo)

USDA Loan

0% down for eligible rural and suburban areas. Includes the 1% upfront guarantee fee and 0.35% annual fee.

Home Price ($)

Down Payment (%)

USDA allows 0% down.

Interest Rate (%)

Term (Years)

Finance the 1% upfront guarantee fee into the loan

Property Tax (%/yr)

Home Insurance ($/mo)

HOA ($/mo)

1-0 Temporary Buydown

Your rate is effectively 1% lower for the first 12 months — the difference is covered by a buydown fund, usually paid by the seller or builder. See both plays: pocket the savings, or keep paying the full payment and let the buydown attack your principal.

Home Price ($)

Down Payment (%)

Note Rate (%)

Year 1 effective rate will be 1% lower.

Term (Years)

How it works: the loan itself is always at the note rate. In year one you pay as if the rate were 1% lower, and the buydown fund pays the lender the difference each month. From month 13 on, you pay the full note-rate payment.

The strategy Matt likes: you were approved at the full payment anyway — so keep paying it. The buydown fund still pays its share, and your "extra" goes straight to principal for 12 months. The results panel shows exactly how much time and interest that wipes out.

Amortization + Extra Payments

See exactly where every payment goes — and what happens when you add a little extra each month or drop in a one-time payment.

Loan Amount ($)

Interest Rate (%)

Term (Years)

First Payment

Extra Monthly Payment ($)

One-Time Extra ($)

Apply One-Time Extra In Month #

e.g., 12 = one year in (tax refund, bonus, etc.)

How Much Home Can I Afford?

A quick estimate based on income, debts, and debt-to-income ratio — the same math underwriting starts with.

Gross Annual Income ($)

Monthly Debts ($)

Car payments, student loans, minimum card payments.

Down Payment ($)

Max DTI (%)

Interest Rate (%)

Term (Years)

Property Tax (%/yr)

Home Insurance ($/mo)

HOA ($/mo)

HOA dues count against your DTI in underwriting, so they directly reduce buying power.

Refinance Break-Even

A refi only makes sense if you keep the loan long enough to recoup the costs. Find your break-even month.

Current Loan Balance ($)

Current Rate (%)

New Rate (%)

New Term (Years)

Years Left on Current Loan

Closing Costs ($)

Calculators are for estimation and education only and do not constitute a loan offer, pre-qualification, or commitment to lend. Actual rates, mortgage insurance premiums, funding fees, taxes, insurance, and program guidelines vary by borrower, property, and date, and are subject to change. FHA, VA, and USDA fee assumptions reflect commonly published program parameters and can be edited above. All loans subject to credit approval. Matthew Brown, NMLS #1254520. Equal Housing Opportunity.

Mortgage Calculators

Conventional Loan

FHA Loan

VA Loan

USDA Loan

1-0 Temporary Buydown

Amortization + Extra Payments

How Much Home Can I Afford?

Refinance Break-Even

Numbers Look Good? Let's Make Them Real.