Rate of Return Analysis
See the true investment return of paying points at 5, 10, 15, 20, 25, and 30-year milestones.
How Rate of Return Works
For each buydown option, the tool calculates both simple and compound interest returns at six time horizons. Think of your buydown cost as an investment — what return does it generate?
- Simple interest returns at 5, 10, 15, 20, 25, 30 years
- Compound interest returns at the same milestones
- Only shown for cost scenarios (not credit scenarios)
- Compare returns across all your rate options at once
Why This Matters
Buydown costs are really investments. By framing them as rate-of-return decisions, you can compare them to other uses of your capital (stocks, savings, more properties).
- Frame buydown decisions as investment returns
- Compare buydown ROI to other investment opportunities
- See how returns compound over the loan lifetime
Sample Output
See what this feature calculates for you.
Rate of Return Analysis
Buydown Cost
$2,697
5yr Simple Return
5.4%
10yr Compound Return
8.2%
30yr Compound Return
11.6%
Ready to Use Rate of Return Analysis?
Get access to this feature and everything else in Rate Buydown Calculator.