Buydown vs. Price Cut Calculator | The Galli Team
The Galli TeamCall (941) 529-1040

Should the seller cut the price — or buy down the rate?

Enter the purchase price and a seller credit. See exactly what that money does to the buyer's monthly payment each way. Built for agents, buyers, and sellers to look at together.

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Pre-filled with a typical Bradenton purchase: $450,000, 5% down, 7.875%. Change any number — everything below updates instantly.

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Option A: Price reduction

Seller lowers the price by the credit amount.
$—
lower payment per month, for the life of the loan
New purchase price
New loan amount
Monthly payment (P&I)
Saved in first 12 months
Saved in first 36 months

Option B: Temporary buydown

The credit prepays interest so the payment starts lower. The note rate does not change.
$—
lower payment per month in year one (temporary)
Price cut, every month
Buydown, year 1
Buydown, year 2
Buydown, year 3
Monthly savings vs. the full payment. Buydown funds are held in escrow; any unused balance is applied to principal if the loan is paid off early. The buyer qualifies at the full payment; a buydown does not change the note rate or help a buyer qualify.
How buydowns work Link copied — it reopens this exact scenario.
Sample one-page buydown scenario PDF
Here's what you'll get: a one-page PDF with both options side by side, the year-by-year payments, and a link that reopens your numbers. See a sample

Want the official numbers?

We'll run this scenario with taxes, insurance, and today's pricing, confirm which buydown structure the program allows, and send you a one-page summary — usually within 2 business hours.

No hard credit pull. Your info is never sold. Got it — your scenario is on its way. Need it faster? Call (941) 529-1040.
Equal Housing Lender · Chris Galli, Region Manager, NMLS #13152 · (941) 529-1040 · thegalliteam.com
Novus Home Mortgage, a division of Ixonia Bank NMLS 423065 | Equal Housing Lender. This calculator is for illustration and comparison only. Payments shown are principal and interest and exclude taxes, insurance, HOA dues, and mortgage insurance. Buydown funding amounts are estimates; actual cost, seller-contribution limits, and program availability depend on the loan program, down payment, and property, and are subject to change. Not a commitment to lend. All loans subject to credit approval. Verify licensing at nmlsconsumeraccess.org.