Four Reasons Why Buyers Should Consider Seller-Paid Points
Posted By Gibran Nicholas
15 January 2014
"Seller-paid points" are where the seller pays points to reduce the interest rate on your mortgage. Consider a home where the list price is $300,000 and the seller is willing to accept a bottom line of $291,000. If the seller reduces the price by $9,000, you would be able to purchase the home for $291,000. Both you and the seller would be happy. However, what if you purchase the home for $300,000 and ask the seller to contribute $9,000 toward your closing costs?...