Rates finally slipped under 7% this morning, about 6.86% on the 30-year. First time in roughly seven weeks.

That means the question I get on almost every offer right now is going to get even louder: should I ask the seller to cut the price, or ask them to pay to buy my rate down?

Let's run it from the ground up, because I think a lot of buyers pick the wrong one.

The setup

$300,000 house. 20% down, so a $240,000 loan. The seller has agreed to give you $10,000 one way or the other.

Quick definitions first. A point is a fee you pay at closing equal to 1% of the loan. On this loan, one point is $2,400. A common rule of thumb is that one point lowers your rate about a quarter of a percent. Every lender prices this differently, so ask yours for the real number.

Option A: $10,000 off the price

• Loan drops to $232,000 at 6.86%.

• Principal and interest: about $1,522 a month.

• Savings vs. no concession: about $52 a month.

Option B: $10,000 toward a permanent rate buydown

• $10,000 buys a little over 4 points on a $240,000 loan. At the rule of thumb, that's roughly a full percent, from 6.86% down to about 5.86%.

• Principal and interest: about $1,417 a month.

• Savings vs. no concession: about $157 a month.

On payment alone, the buydown wins by about $105 a month, roughly three times the monthly savings of the price cut.

So why doesn't everybody take the buydown?

• If rates keep falling and you refinance in two or three years, you threw away most of what that buydown paid for. The price cut stays with you forever.

• A lower price means you start with more equity, and it can help keep your assessed value (what the county taxes you on) lower down the road.

• There are caps on how much a seller can contribute. On a conventional loan it's generally 3% with less than 10% down, 6% with 10% to 25% down, and 9% with more than 25% down. Investment properties are capped at 2%. FHA allows up to 6%.

There's also a middle option some builders are pushing right now, a temporary buydown (a 2-1 buydown: your rate is 2% lower the first year, 1% lower the second, then full rate). Lower payment while you settle in, but it ends.

My honest take: if you plan to hold the loan a long time and you think rates are stuck near here, the permanent buydown usually wins. If you think rates are headed toward 6% and you'll refinance, take the price.

What's everybody doing on their offers right now? Asking for price, rate, or closing costs? And how many points per quarter percent are your lenders actually quoting this week?