Buyer, Seller & Agent Tool

Seller Concession vs. Price Reduction

The same seller dollars can do very different things for a buyer's payment. Compare side by side.

Purchase price

Down payment

Note rate

Loan term

years

Seller dollars

Price cut or credit amount

Bought-down rate

From your lender's pricing

Points for that rate

% of loan

From your lender's pricing

Payment with no concession$5,322.42

Option A

Price reduction

$5,215.97/mo

Saves $106.45/mo

New price$980,000

Loan amount$784,000

Down payment saved$4,000

Rate7%

Option B

Permanent buydown

$4,925.74/mo

Saves $396.68/mo

Lender points cost$18,000

Rate (lender-quoted)6.25%

Credit left for closing costs$2,000

Savings over 5 yrs$23,801

Lowest initial payment

Option C

2-1 temporary buydown

$4,294.57/mo yr 1

Saves $1,027.85/mo

Subsidy cost$18,646

Year 2 P&I$4,796.40

Year 3+ P&I (note rate)$5,322.42

Credit left for closing costs$1,354

P&I only; taxes, insurance and MI not included. Permanent buydown pricing uses the rate and points you enter from an actual lender quote — no assumed point-to-rate ratio is applied. The temporary buydown keeps the note rate at 7%; qualification is based on the note rate. Seller concessions are subject to loan program limits.

Educational estimate only. Results are not a Loan Estimate, rate lock, rate commitment, or guarantee of loan approval. Actual rates, payments, taxes, insurance, and program eligibility vary and are subject to underwriting. Contact Marc Chamberlain for a personalized quote.

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