Points Buy Down or Price Reduction

[Damon Albers]

I'm working with a seller and they are offering a price reduction or to pay for points. 

The price is $109,900 so they will reduce that price by 2% which is $2,180 to arrive at $107,720, or they will pay a 2% discount fee to lower my rate from 6.5% to 6% on a 30 year conventional with a 25% down payment. 

Thank you!

Damon

[Tyrek Brown]

If you plan on holding this property for longer than 7 years then 100% you should have the seller pay for the discount fee. You'll earn more than $2,180 after that point just from the seller buying down the rate.