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Compare a seller credit with a price reduction through year three

The video compares a $25,000 price reduction with a $12,000 seller credit toward a temporary buydown. Its strongest lesson is to compare the payment schedule, not just the opening payment.

By Eric Hamilton · Published October 6, 2026

Originally uploaded September 3, 2026 · 2:12 · Watch on YouTube

Written companion added October 6, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Read the rounded illustration

The recording shows roughly $3,235 in monthly principal and interest before the buydown, about $2,602 during year one and $2,911 during year two. That illustrates temporary monthly reductions of about $633 and $324. The proposed lower-price version shows about $3,081.

Include the payment after assistance ends

The temporary option returns to the scheduled principal and interest payment after its subsidy ends. Taxes, insurance, mortgage insurance and any association fees are additional. The price reduction also lowers the amount paid for the home, so first-year savings alone do not settle which deal is better.

Check the full-payment budget

Fannie Mae requires qualification using the note rate without the bought-down payment. Confirm the permitted seller contribution, exact buydown funding and terms for unused funds. A later refinance is a separate decision and is not guaranteed.

Does a 2-1 buydown permanently reduce the mortgage rate?

No. It provides temporary payment assistance while the mortgage note retains its contractual terms.

Sources and scope

Published September 3, 2026. Figures are the recording’s rounded illustration, not a current quote or independently verified customer result.

  1. Fannie Mae: Temporary interest rate buydowns Accessed October 6, 2026
  2. Fannie Mae: Interested party contributions Accessed October 6, 2026

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

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