COMPARE / WASHINGTON PURCHASE STRATEGY
Seller credit or price reduction? Understand what changes.
A seller concession can affect your financing in different ways. Compare the loan amount, upfront costs, and payment over time.
A price reduction changes the purchase price.
If the seller agrees to a lower price, the loan amount can fall too. The effect depends on the down payment you choose. Our comparison holds the down-payment percentage constant, which also changes the dollar amount of the down payment.
The calculator keeps taxes and other entered costs unchanged so you can isolate the principal-and-interest effect. A real transaction needs property-specific cost estimates.
A seller credit has a different job.
A negotiated credit can cover eligible transaction costs within the applicable loan rules. It does not automatically lower the mortgage balance. Eligibility, contribution limits, and actual allowable costs determine how much can be used.
In this comparison, a credit is not counted as down-payment money or cash back. Ask the loan team to confirm the specific use and acceptable amount before an offer is written.
A 2–1 buydown subsidizes the early payments.
In this fixed-rate model, the loan keeps its full note rate. A funded subsidy lowers the borrower’s principal-and-interest payment for the first two years. Year-one payments are calculated using a rate two percentage points below the note rate, and year-two payments use one percentage point below it.
Full note-rate payments begin in year three. This is a temporary subsidy, not a permanent rate reduction. Qualification for the fixed-rate example uses the full note-rate payment. Budget for that full payment without relying on a future refinance.
Check whether the credit actually funds the plan.
The calculator adds the monthly payment subsidies for all 24 months to estimate the buydown funding. If your concession budget is smaller, it clearly shows the shortfall. Any remaining budget can only be used for other eligible costs as permitted by the lender.
Actual terms, costs, eligible properties, funding sources, and program availability require lender confirmation. Taxes, insurance, mortgage insurance, and HOA dues can change independently of the subsidy.
Compare the whole timeline.
Review your payment in years one, two, and three; loan amount; cash needed at closing; and how long you expect to keep the home. Bring both scenarios to Cory and Troy before deciding how to structure an offer.
Make the next step a clear one.
Talk with Cory about your Washington home, or start through your secure mortgage application.
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