Buying Tools
Making the Most of a Seller Credit
A lower purchase price, a seller credit toward closing costs, or a credit to help buy down your interest rate can affect your budget differently. Each option can change your monthly payment, the cash you need at closing, and your costs over time.
Use the calculators below to explore the possibilities for the home you have in mind. These estimates are a starting point for planning. Work with your lender to confirm current rates, accurate costs, and how seller credits can be used with your loan.
Buy down your rate
Best when you plan to stay put for a while and want the lowest monthly payment.
Rate Buydown CalculatorLower the price
Reduces your loan, your down payment and often your property taxes.
Compare price vs. creditCredit at closing
Best when keeping cash in your pocket on closing day matters most.
Compare price vs. creditA starting point for planning
These calculators help you explore your options using estimated numbers. They are not a loan offer, rate quote, or financial advice. The cost of discount points and how much they lower your rate depends on current pricing, your credit, and your loan program. Seller contribution limits and how those funds can be used also vary. Before making an offer or financing decision, work with your lender to confirm current rates, accurate costs, and loan options specific to your situation.
True Blue Real Estate · Buyer Tools
Rate Buydown Calculator
See how far a seller credit (or your own money) can lower your interest rate, what it saves you each month, and how long it takes to pay for itself.
Without a buydown
Your quoted rate.
- Loan amount
- Interest rate
- Interest paid
With the buydown
0 discount points purchased.
- Loan amount
- Interest rate
- Interest paid
Use this calculator to explore how buying down your interest rate could affect your payment and costs over time. One discount point costs 1% of your loan amount. The rate reduction you receive varies, so ask your lender what buying points would cost and how much they would lower your rate. Break-even shows how long it takes for your monthly savings to cover the buydown cost. Net savings estimates the interest you save during the time you keep the loan, minus the buydown cost. Payments include principal and interest only. Taxes, homeowners insurance, and mortgage insurance (PMI) are additional. Limits on seller contributions vary by loan program. These estimates are a starting point for planning. Contact your lender for current rates, accurate costs, seller contribution limits, and a Loan Estimate specific to your situation.
True Blue Real Estate · Buyer Tools
Price Reduction or Closing Credit?
Should the seller take money off the price, or give it to you at closing? Compare your monthly payment, cash needed up front, and cost over time.
Lower the price
Concession comes off the purchase price.
- Purchase price
- Loan amount
- Down payment
- Cash to close
- Cost over 7 yrs
Credit at closing
Concession pays your closing costs.
- Purchase price
- Loan amount
- Credit applied
- Cash to close
- Cost over 7 yrs
“Cost over time” adds together the cash you bring to closing, your monthly principal and interest payments during the years you keep the loan, and the remaining loan balance at the end of that period. Payments shown include principal and interest only. Property taxes, homeowners insurance, and mortgage insurance (PMI) are additional. These costs may also differ between options. Seller contribution limits vary by loan program, and unused closing credits generally cannot be paid to you in cash. Use these estimates as a starting point for planning. Contact your lender to confirm current rates, accurate costs, how seller credits can be used, and a Loan Estimate specific to your situation.
Not sure which to ask for?
The right choice depends on your loan, your savings and how long you plan to live in the home. If you don’t have a mortgage lender yet, we’re happy to connect you with a few local lenders we trust who can walk you through your options in detail. You can also learn more about buying a home with True Blue.
