09/28/2026
🏡 Thinking about cutting your home’s price? First, see what those same dollars could do for a buyer’s monthly payment.
For buyers, the question is often, “Can I comfortably afford the payment?” For listing agents, a seller-funded **2-1 temporary buydown** can be another way to answer that question and make a listing more attractive.
- A price cut may have a smaller monthly impact than you would think.
** In the example below, a $10,000 price reduction would lower principal and interest by about $60 per month, assuming the buyer still puts 20% down.
- A 2-1 buydown gives the buyer more relief upfront. It reduces the buyer’s effective rate by 2% in year one and 1% in year two. In year three, the payment reaches the full loan rate.
- That timing can be valuable.
The first two years are when buyers may be paying for a move, furniture, and all the little things that turn a new house into a home.
- Sellers and listing agents get another option to present.
Before reducing the asking price, compare what the proposed concession would do as a buydown. The better choice depends on the buyer’s goals and the seller’s numbers.
**Here’s the example from my Guaranteed Rate Affinity flyer:
With a $360,000 loan, a 30-year term, and a 6.50% loan rate, principal and interest would be $2,395.09 per month.
However, with a 2-1 buydown, the buyer’s payment would be:
- Year 1: $1,932.56 per month — $462.53 monthly savings
- Year 2: $2,158.38 per month — $236.71 monthly savings
That’s $8,390.88 in payment savings over the first two years. By comparison, on a $450,000 purchase with 20% down, a $10,000 price cut would reduce the loan amount by $8,000 and save roughly $53 per month at the same 6.50% rate.
A price cut does provide a *lasting* reduction in the loan balance. A temporary buydown provides *larger early payment relief*.
Buyers and listing agents: Send me the purchase price and the seller concession you’re considering. I’ll show you the numbers side by side so you can choose the option that makes the most sense. 🎩
**Flyer example rates and APR were effective September 28, 2026, and are subject to change. The flyer’s scenario assumes a primary residence and 20% down; it is an illustration, not a Florida loan quote. Loan terms are subject to credit and underwriting approval.
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| The Lender in the Purple Hat!
Guaranteed Rate Affinity
Ryan Boody - Vice President of Mortgage Lending
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