On Target Mortgage
Forward Commitment Calculator
Price a builder-funded rate buydown off OTM's live forward-commitment grid, and show the buyer exactly what they save every month against a market-rate loan.
Scenario A
Base price · market rate
The buyer's baseline with no incentive — what they'd get anywhere else.
Scenario B
Buydown · price raised to fund it
Cost fully recovered in price — comp recorded $47,605 higher.
The margin-neutral play
Raise the price by the commitment cost and the buyer still saves $510/month versus buying at the base price with a market-rate loan — while OTWD recovers its full $47,605 cost and books a higher comp. The buyer fronts $2,380 more at closing and earns it back in 5 months.
On Target Mortgage forward pricing — Government 30YR
Cost as a percentage of loan amount. Click any cell to load that rate and lock into the calculator.
| Note rate | 60 day | 75 day | 90 day |
|---|---|---|---|
Principal & interest only. Excludes taxes, insurance, HOA, and FHA MIP / conventional PMI — add those equally across scenarios. The buydown works only if the home appraises at the raised price; the forward-commitment cost is not a seller concession, so it isn't deducted from value, but comps still have to support it.
Scenario B solves for itself. Raising the price raises the loan, which raises the commitment cost — so the price increase is solved algebraically for the exact amount needed to cover its own larger commitment, rather than simply matching the unadjusted cost.
Government temp buydowns carry an extra 50 bps on the CD for note rates at or below 5.125%; if the commitment is 100% temp buydown, that 50 bps is collected upfront. It's included in the cost above when it applies. VA prices 0.40 worse than FHA across the entire Government 30YR grid — switch Loan type to VA and the grid below re-prices.
Commitment expirations: 60-day 12/5/26 · 75-day 12/20/26 · 90-day 1/4/27. Conventional and Conv ARM require 720 FICO; Conv 7/1 ARM is LP-only with 90% max LTV. Government requires 640 FICO. FHA 5/1 ARM requires a $2MM minimum commitment. Pricing changes daily — confirm current pricing with the OTM forward commitment desk before quoting.