At 7.40%,every dollarof room counts.
Buyers shop by monthly payment. A flat fee leaves sellers with money they can use where buyers feel it most, and that helps the deal close.
Rate defaults to Freddie Mac's 30-year fixed average for 10-08-2026.
On a $450,000 sale. The buyer's payment at 7.40% with 20% down is $2,493 a month.
Taking $6,255 off the price lowers the buyer's loan, and their payment, by this much.
Covers a full 1-0 buydown (1-0 costs $2,889, 2-1 costs $8,542). That's the first-year payment drop.
Principal and interest only, 30-year fixed. Taxes, insurance and mortgage insurance are not included. Illustrative; not a loan offer or a seller net sheet.
How a seller-paid buydown works
The seller agrees to a concession in the contract. At closing, that money funds an account the lender draws from to cover part of the buyer's payment for the first year or two.
In a 2-1 buydown, the buyer pays as if the rate were two points lower in year one and one point lower in year two. In a 1-0 buydown, it's one point lower for the first year. The cost is the exact payment difference, so it's known on the day you sign.
Loan programs cap how much a seller can contribute, and conventional limits run from 3% to 9% of the price depending on the down payment. The buyer's lender confirms what's allowed.
If you're the one buying
In a 7.40% market, the most useful question you can ask a seller is what they can put toward your rate. A seller who paid a flat fee to sell has more room to say yes.
Talk to your lender about how a seller concession would be applied to your loan before you write the offer.
Put a number on your negotiating room.
We’ll run your price, your band and the concessions buyers in your area are asking for.