LOWER PAYMENTS + TONS OF MONEY SAVED OVER THE LIFE OF LOAN? ... Do tell.


Ok, so say you’re interested in buying a home listed for $300,000, where the seller is willing to settle for a bottom line of $291,000.

You could ask the seller to knock $9,000 off the list price. But in that scenario, you might be better off asking the seller to instead contribute $9,000 toward your closing costs in the form of “seller-paid points” that reduce the interest rate on your mortgage.

The seller would still get the same amount of money. But the latter scenario has some major advantages for you.

First of all, you’d end up paying a lower interest rate and monthly payment. Your mortgage balance may be a little more. But if the seller pays two or three points…

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