Builder offer comparison
Compare builder offers on what they really cost
Each input is tagged: Actual figures come from the builder's price sheet or the lender's Loan Estimate
- Source: Actuala figure from a document such as a price sheet, lease, tax bill or lender quote.
- Source: Assumptiona choice or judgment you make, such as down payment, vacancy or how long you hold.
- Source: Estimatean estimate of a cost or value, such as insurance, comparable rents or value after renovation.
Results are calculated from these inputs. They are estimates, not quotes, appraisals or advice.
Side by side
| Estimate | Builder A | Builder B |
|---|---|---|
| Base price | $550,000 | $575,000 |
| Lot premium | $15,000 | $0 |
| Total upgrade costStructural options plus design-center upgrades | $55,000 | $30,000 |
| Builder discount (price) | $0 | −$10,000 |
| Effective purchase price | $620,000 | $595,000 (lowest) |
| Loan amount | $558,000 | $535,500 |
| Discount points paid | $0 | $0 |
| Builder-funded rate buydownCost of the temporary buydown | $0 | $12,188 |
| Builder credits used at closingUp to closing costs, points and the lender limit | $14,000 | $5,000 |
| Estimated cash to closeDown payment, closing costs and points, less usable credits | $62,000 (lowest) | $68,500 |
| Estimated monthly costFull principal and interest, taxes, insurance, HOA and mortgage insurance | $4,477 | $4,385 (lowest) |
| Monthly cost in year oneLower only when there is a temporary buydown | $4,477 | $3,713 (lowest) |
| Out of pocket over 7 yearsCash to close plus every monthly payment | $438,063 | $424,629 |
| Loan balance after 7 years | $504,523 | $484,179 |
| Net cost of ownership over 7 yearsOut of pocket less the equity you hold at the purchase price; excludes appreciation and selling costs | $322,586 | $313,808 (lowest) |
| Value of builder incentivesDiscount, usable credits and buydown | $14,000 | $27,188 |
- Builder A: $1,000 of the credit may go unused (it exceeds closing costs and points, or the 6% limit including any buydown). Ask whether it can become a price reduction or upgrades instead.
- Builder B: the monthly payment rises by $671 after the buydown's first year and reaches the full amount in year 3. Lenders usually qualify you at the full payment.
How this is calculated
- Purchase priceBase price + lot premium + options + upgrades − builder discount
- $620,000
- Discount pointsLoan × points %
- $0
- Temporary buydown cost (builder-funded)Σ (full payment − reduced payment) × 12 for each buydown year
- $0
- Contribution limitPurchase price × 6% (conventional, at this loan-to-value)
- $37,200
- Builder credits appliedLowest of: credits offered, closing costs + points, limit − buydown cost
- $14,000
- Cash to closeDown payment + closing costs + points − credits applied
- $62,000
- Out of pocket over 7 yearsCash to close + payments made (net of buydown) + taxes, insurance, HOA, mortgage insurance
- $438,063
- Net cost of ownership over 7 yearsOut of pocket − (purchase price − loan balance)
- $322,586
The link holds only the figures in this tool, in the web address. Nothing is saved on our servers, and no name or contact details are included. See our privacy policy.
The figures shown are examples. Replace them with each builder's price sheet, incentive terms and your lender's Loan Estimate. Some incentives require the builder's affiliated lender. This is not a loan offer, an appraisal, or legal or tax advice, and no discount or concession is assured.
Estimates for information only, based on the figures you enter. Not a loan offer, appraisal, or legal or tax advice. Read more about builder financing incentives and comparing builder and outside lenders.
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