---
title: How to Enter a Buydown Program in SphereLOS
description: PUBLISHED
---
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October 1, 2026
# How to Enter a Buydown Program in SphereLOS
## This guide walks you through the steps to enter a buydown program, from setup to loan file entry, including common issues and solutions
### **What’s a buydown?**
A buydown temporarily lowers the borrower’s interest rate for a set period. **Common examples:**
SphereLOS supports both predefined plans and custom configurations via **Loan Additional \> Buydown Information.**
---
### **Admin Setup: Enable Buydown in a Program**
#### *(**System Admins only**)*
To make the Buydown section available in loan files:
1. Go to **Settings \> Programs**.
2. Click the **edit pencil** icon next to an existing program, or click **Create New Program** at the top right
3. For new programs, complete the relevant fields within the **Program** Edit (rate type, amortization term, qualifying payment type, etc.)
4. Under **Additional**, click the **Buydown** toggle to enable it.
5. Click **Save**
For more details, see the full guide: **[How to Create a New Program in SphereLOS](https://spherelos.com/kb/how-to-create-a-new-program-in-spherelos?hsLang=en)**
---
### **Entering a Buydown in the Loan File**
1. Open the loan and go to **Overview \> Terms and Mortgage**.
2. In the **Program** field, select your Buydown-enabled program.
3. Enter the **full Note Rate** (not the reduced rate).
4. **Click Save.**
⚠️ If the Note Rate is missing or reduced, calculations will be inaccurate. Always enter the full Note Rate.
5\.Next, go to **Loan Additional \> Buydown Information** and click the **edit pencil**.
6. Under **Predefined Plan** , choose one of the following:
- - Select a **Predefined Plan** (e.g., 2-1, 3-2-1): Fields like **Change Frequency Months**, **Increase Rate** Percentage, and **Duration Months** will auto-populate — review them for accuracy.
- Choose **Not Defined** to create a custom plan by manually entering **Change Frequency Months**, **Increase Rate** Percentage, and **Duration Months**
7. Under **Funds Source Type**, choose the appropriate option from the dropdown list (borrower, property seller, lender, or other).
8\. Click **Save** to generate the **Buydown Funds dollar amount** and view the detailed breakdown (effective interest rates, borrower payments, and buydown costs per period).
---
### LE & Disclosure
- **Borrower-paid buydowns**:
- LE and Amortization Schedule will show reduced rates
- Ensure **Disclosure \> Cost Details** includes a **Buydown Fee** or equivalent
- **Non-borrower funded buydowns**:
- - LE shows the full Note Rate
- Ensure **Disclosure \> Cost Details** includes a **Buydown Fee** or equivalent
**Always check with your lender for specific disclosure requirements.**
#### **To Add a New Fee Type (Buydown Fee) to the Disclosure:**
- Go to **Disclosure \> Cost Details**.
- Click **Edit** in the top-right corner and select **Add New Fee/Escrow**.
- In the **Fee Edit** window:
- Choose the appropriate **Loan Estimate cost category** (e.g., Origination Charges, Prepaids, Other).
- Select the **Fee Type** from the list. If **Buydown Fee** is not available, choose **Other** and enter ***Buydown Fee*** as the name.
- Complete all other required fields.
- Click **Save**.
- Review the **Cost Details** screen and click **Save** again when finished.
#### **[Click here fo](https://spherelos.com/kb/how-to-setup-fee-templates-in-spherelos-fee-and-escrow-types?hsLang=en)[r detailed guidance on How to Set Up Company Fee & Escrow Templates in SphereLOS.](https://spherelos.com/kb/how-to-setup-fee-templates-in-spherelos-fee-and-escrow-types?hsLang=en)**
---
### Common Buydown Issues and How to Fix Them
---
**Questions? Contact us at support@spherelos.com — we’re here to help.**
- [FAQs](https://www.spherelos.com/kb/faqs?hsLang=en#main-content)
- [How-To](https://www.spherelos.com/kb/faqs?hsLang=en#how-to)
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- [Getting started](https://www.spherelos.com/kb/getting-started?hsLang=en#main-content)
- [Fee and Escrow Type](https://www.spherelos.com/kb/getting-started?hsLang=en#fee-and-escrow-type)
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