When a seller offers a credit at closing, most buyers apply it to the price and barely feel it. A temporary rate buydown puts that same money toward your interest rate — cutting your monthly payment in the early years, when it matters most.
There's no downside to the buyer.
The seller's credit is deposited into escrow at closing. Any unused seller credits will be applied to other costs at closing or be applied as a principal reduction.
Enter the loan details and choose a plan to see your payment schedule and the seller credit it takes to fund it.
The shaded portion is covered by the seller credit. Your payment rises each year until it reaches the note-rate payment.
Full principal & interest at the note rate is —/month.
| Period | Rate | Monthly P&I | Monthly savings | Credit needed |
|---|
Can't-lose reminder: Any unused seller credits will be applied to other costs at closing or be applied as a principal reduction. After the buydown period, the loan reverts to the fixed note rate.
I'll structure the seller credit and buydown on your next purchase.