Put the Seller's Money
to Work for You.
A seller credit is money the seller contributes toward your costs at closing. Used well, it can cover closing costs, buy down your interest rate, or lower your payment for the first two years. If the seller hasn't offered one, we can ask.
I'll work alongside your agent to figure out what to request and show you exactly where every dollar goes, before you write the offer.
Show Me the Numbers →You bring the goal. I'll bring the strategy.
Let's get you home.
One credit. Three ways to use it.
Most buyers think of a seller credit as help with closing costs. That is one option. Here are all three, and when the numbers allow, we can combine them.
Cover your closing costs.
Apply the credit to eligible loan and closing costs, so more of your savings stays in your pocket on closing day.
Lower your rate for the long run.
Use part of the credit to pay discount points. On a fixed-rate loan, that can reduce your rate and payment for as long as you keep the loan.
Ease into your payment.
Fund a temporary 2-1 buydown. Your payment is lower in years one and two, then returns to the full amount in year three.
No credit on the table? Let's talk about asking.
Your agent and I will look at the home, the market, and your numbers, then decide together what makes sense to request. You'll see each option side by side, in plain English, before you commit to anything.
What's possible depends on the credit you negotiate, your eligible costs, pricing on the day you lock, and the limits of your loan program. Every use has its own cost, and the same credit dollars are never counted twice.
The closing is the beginning of our relationship.
After you move in, I keep watching the market for you. If a refinance ever makes sense, you'll hear it from me first.
See what a 2-1 buydown could do to your payment.
This estimates the temporary buydown piece of your plan and the seller credit it would take to fund it. If we also use credits for closing costs or a permanent rate reduction, I'll price those separately and build your full plan.
The rate you enter is an illustration, not a quote or an offer. Rates change daily and your pricing depends on your full scenario. Estimates show principal and interest only. Taxes, insurance, HOA dues, and mortgage insurance are additional. A temporary buydown reduces your payment, not your note rate, and you must qualify at the full payment.
The buydown cost roughly equals the two-year payment savings. Closing costs and discount points are not included in this estimate.
Build My Plan →Lower payments now.
Options if rates fall later.
You don't have to bet on rates dropping. The payment reductions are scheduled and funded at closing.
If you refinance before the buydown funds are used up, the remaining balance is generally applied to reduce your loan payoff, subject to your buydown agreement.
Either way, the seller's money keeps working for you.
The pattern the market
keeps repeating.
Rates have spiked and eased several times since 2022. Buyers who used a buydown during a high stretch had payment relief right away, and a lower-rate window to review afterward. Nobody can promise the next window, but the history is worth seeing.
A late-2022 peak was followed by a lower-yield window within weeks. A reason to review the loan, not an automatic refinance.
Another high, then a meaningful decline in the same quarter. This is why I review my clients' loans every year.
Mortgage rates fell too. Freddie Mac reported rising refinance activity in September 2024 as its 30-year average reached 6.08%.
Sources: Federal Reserve / FRED · DGS10Freddie Mac · September 26, 2024
Line shows weekly-average Treasury yields, with the latest daily observation at "Now." The examples show selected daily high and low observations and are not a forecast. Highlights illustrate potential strategy windows, not actual transactions or borrower outcomes. Treasury yields influence mortgage pricing but are not mortgage rates. Refinancing depends on eligibility, equity, available rates, and costs, and is never guaranteed.
Seller credits, in plain English.
What is a seller credit?
It's money the seller agrees to contribute toward your costs at closing. It is negotiated in the purchase contract and can go toward eligible closing costs, discount points for a lower rate, or a temporary buydown. Each loan program limits how much a seller can contribute.
What is a 2-1 buydown?
Your payment is calculated as if your rate were 2 percentage points lower in year one and 1 point lower in year two. In year three it returns to the full payment for the rest of the loan. The cost is paid up front, often with a seller credit, and you must qualify at the full payment.
What happens to the buydown money if I refinance early?
In most cases, unused buydown funds are applied to reduce your loan payoff. The details are set by your buydown agreement and loan program, and I'll walk you through them before you sign.
How much can a seller contribute?
It depends on the loan type, your down payment, and how you'll use the home. Conventional, FHA, and VA loans each have their own limits, and a credit can't exceed your actual eligible costs. I'll confirm the limit for your scenario before you write an offer.
Your home.
Our plan.
Tell me where you're looking. I'll personally walk you through the numbers and coordinate the credit strategy with your agent.
Already found a home? Include the address and I'll make the plan specific.
Call or text Ken: 916-275-3469
KClarkJr@PRMG.NET
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