If you're buying or selling a home, a seller-paid buydown might be the perfect solution. This arrangement involves the seller paying extra upfront to lower the interest rate on a loan. The extra cost, known as points, helps reduce the borrower's monthly payments. For example, on a $100,000 loan, one point costs $1,000, and the amount of interest saved can vary.

For buyers, a seller-paid buydown means lower monthly payments and a more affordable mortgage, thanks to a reduced interest rate. For sellers, offering this option can make their home more attractive, especially when interest rates are high. It can help sell the home faster and make the listing stand out.