Results update as you type. Use the arrow keys to review suggestions and Enter to open one.
Seller Credit Calculator
A $10,000 price cut and a $10,000 seller credit feel similar in negotiation but behave very differently. One lowers your loan; the other lowers your cash at closing or buys down your rate.
Which is better depends on whether your constraint is monthly payment or money in the bank.
Your numbers
Your results
Buying down the rate wins on payment
$102/mo difference
- A — Price reduction: payment
- $2,192
- A — Cash needed
- $18,250
- B — Credit to closing costs: payment
- $2,252
- B — Cash saved at closing
- $10,000
- C — Credit to rate buydown: payment
- $2,090
- 7-year payment savings, best option
- $13,594
Loan of $346,750
Down payment only; closing costs unchanged
Straight reduction in cash to close
Rate of 5.798% using 2.81 points
| Option | Payment | Cash at closing | 7-yr payment cost |
|---|---|---|---|
| Price reduction | $2,192 | $18,250 | $184,102 |
| Credit to closing costs | $2,252 | $8,750 | $189,146 |
| Credit to rate buydown | $2,090 | $18,750 | $175,552 |
What happens if you change this
A $10,000 price reduction lowers your loan and your payment to $2,192. The same $10,000 as a credit toward a rate buydown gets you 5.798% and a $2,090 payment — $102 lower. Taken as a closing cost credit instead, your payment stays $2,252 but you keep $10,000 in cash. If your constraint is cash to close, take the credit. If it's the monthly payment and you'll hold the loan past 7 years, the buydown usually wins. Program limits cap how large a seller credit can be.
Ready for real numbers?
Estimates get you oriented. A pre-approval gets you an offer sellers take seriously.
Related calculators
- Rate Buy-Down CalculatorDecide whether paying points to lower your rate is worth it — and when you'd get the money back.
- Closing Cost EstimatorEstimate lender fees, title, transfer tax and prepaid escrows — the costs that surprise buyers most.
- Cash to Close CalculatorThe single number that matters most at the start: how much you actually need in the bank.
- Mortgage Payment CalculatorSee your full monthly payment — principal, interest, taxes, insurance and mortgage insurance — not just principal and interest.
Questions people ask
- How large can a seller credit be?
- It depends on the loan type and down payment — commonly 3% to 6% of the purchase price, and it can never exceed your actual closing costs and prepaids.
- Why would a seller prefer a credit over a price cut?
- It preserves the recorded sale price, which supports the comparable sales in their neighborhood and can be easier for them to accept.
Estimates for education only — not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2279 · Equal Housing Opportunity.