SmartStart BuyDown Calculator
Lower your monthly payments in your first year. See how much you save with a 1% rate reduction funded by Premium Mortgage Corporation.
Loan Info
SmartStart 1-0 Buydown
Standard
Years
$
%
SmartStart Advantage: Your note rate is subsidized by 1.00% for the first 12 months, lowering your payments while you get settled into your new home.
Results Summary
See how your monthly payment changes during the temporary buydown period and what your payment will be after the buydown ends.
| Year | Rate | P&I Payment | Monthly Savings¹ | Annual Savings |
|---|---|---|---|---|
| Year 1 | 7.000% | $2,661.21 | $273.85 | $3,286.18 |
| Year 2 through 30 | 8.000% | $2,935.06 | $0.00 | $0.00 |
Total Monthly Savings:
$273.85
Total Buydown Covered by Premium Mortgage:
$3,286.18
¹ Monthly savings are calculated against the standard note rate payment. Principal and interest only; excludes taxes, homeowners insurance, and HOA dues if applicable.
Got Questions?
Frequently Asked Questions
Who pays for the SmartStart 1-0 buydown?
The total buydown cost is covered by Premium Mortgage for qualifying loans, providing you with a full 1.00% interest rate reduction for your entire first year.
How does the escrow subsidy work month-to-month?
The total buydown cost is deposited into a dedicated escrow account at closing. Each month during Year 1, your mortgage servicer automatically withdraws the difference from escrow to make up your full note payment.
What happens if I refinance or sell before Year 1 ends?
Any remaining funds sitting in the buydown escrow account are credited directly toward paying down your remaining principal loan balance at payoff. You never lose remaining escrow funds.