Price Reduction Vs Buydown Calculator
2023
Client
Mark Witte
From
United States
The Challenge
To create a calculator that will show Price Reduction/Seller Contributes to Buydown
Live Example 👇
PRICE REDUCTION VS TEMPORARY BUYDOWN CALCULATOR
Option 1: Price Reduction
Original P+I Pmt:
Reduced P+I Pmt:
$15000
Net monthly savings:
$15000
Net annual savings:
$15000
It will take 10 years or 120 months for the price reduction savings to match the temporary buydown savings.
Option 2: No Price Reduction/Seller Contributes to Buydown
This is the % the rate will be bought down each year.
| Year | Buydown |
|---|---|
| 1st Year | |
| 2nd Year | |
| 3rd Year | |
| 4th Year |
| Year | Rate | P&I Payment |
|---|---|---|
| 1st Year | ||
| 2nd Year | ||
| 3rd Year | ||
| 4th Year |
Seller Contribution Needed: $50,000 Buydown Cost
Feedback
— Jamie Simplymh
“Working with Ramzan was great – he is very communicative, works fast, seeks client satisfaction and asks questions to make sure he understands the task – will work with him again!”
