How to Use the Below-Market Mortgage Rate Savings Calculator
Most states run a Housing Finance Agency (HFA) offering first-time and income-qualified homebuyers a fixed mortgage rate below conventional market rates, often paired with down payment assistance. Unlike a temporary buydown, the below-market rate typically applies for the entire loan term.
Enter your loan amount, the program rate, and a comparison market rate to see your estimated annual and total interest savings over the loan term. This is a simplified estimate assuming a constant loan balance — actual savings depend on your amortization schedule. Check your state HFA's website for exact rates and eligibility.
Frequently Asked Questions
Most states have a Housing Finance Agency offering below-market mortgage rates and down payment assistance to first-time and income-qualified homebuyers. Rates are typically 0.5%-2% below conventional market rates.
Unlike temporary rate buydowns, most state HFA first mortgage programs lock in the below-market rate for the full loan term, not just an initial period.
Eligibility usually depends on being a first-time homebuyer (or not having owned in the past 3 years), household income limits, and purchase price limits that vary by state and county.