Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I have a question , Im interested in buying a house for $350,000 the seller is giving me $20,000 sellers concessions towards my closing cost.......How does that work .....the broker stated that my loan would be for $370,000 and the seller would give me the 20,000 for closing costs. I'm thinking that in the long run I would be paying interest on the 20,000 for 30 years and my mortgage payment would be higher........Is this the way a sellers concession works and if so how does this benefit me?
I have a question , Im interested in buying a house for $350,000 the seller is giving me $20,000 sellers concessions towards my closing cost.......How does that work .....the broker stated that my loan would be for $370,000 and the seller would give me the 20,000 for closing costs. I'm thinking that in the long run I would be paying interest on the 20,000 for 30 years and my mortgage payment would be higher........Is this the way a sellers concession works and if so how does this benefit me?
How was your "accepted," if any, offer presented? If you offer 350K with 20K for CC concession, then you are going to finance 350K not 370K. If you offer 370K with 20K towards CC, then you are financing 370K. If you understood your offer, you won't have this confusion. Basically a seller concession is the freedom to have cash on hand and willingness to finance (at a much lower rate) that over long term, if the house appraises for purchase price.
Yes, you're paying interest on that money for 30 years, or whatever the term of your mortgage is. But the big question is, why would you have anywhere near $20k in closing costs? Sounds like you need a new lender if he's charging that much.
FalconheadWest is correct. Right on target. The seller will credit you at closing. Ask your realtor for an estimated settlement statement. The final numbers may not yet be available but they should be able to work up an estimated settlement statement. It will show you exactly where the credits and debits fall from the buyer and the seller. Your realtor should be able to explain each line to you. I'm sure it will become clear at that point.
Best wishes.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
