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.
Pays for a lower rate for 1 year. A lower rate for 1 year costs $2,889; for 2 years, $8,542. This is how much the first year's payment drops.
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 can lower the buyer's rate
The seller agrees in the contract to put money toward the buyer's loan. At closing, that money goes into an account the lender uses to pay part of the buyer's monthly payment for the first year or two. Lenders call this a rate buydown.
There are two common versions. In one, the buyer's rate is 1% lower for the first year (6.40% instead of 7.40%). In the other, it's 2% lower in the first year and 1% lower in the second. After that the loan goes back to its normal rate. The cost is exactly the payments it replaces, so you know it 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.
How buying with TX.co works: one flat fee, the rest back to you
Put a number on your negotiating room.
We’ll run your price, your fee tier and the concessions buyers in your area are asking for.