How to get a lower mortgage rate? The agent representing the seller needs to be topnotch and on top of their game, in order for the strategy to work. The selling agent must be a negotiator and make this special strategy a reality for their buyer. Hi, I’m Rich Barnes, owner/broker of Realty Experts in West Allis, Wisconsin, 53214. And this special strategy works great in buyers markets, markets in which there are more sellers than there are buyers. That is to say that there’s more supply than there is demand. That is not to say that this wouldn’t work in a seller’s market. It’s just a little bit harder. A buyer’s market works best, because buyers typically have the negotiating leverage. A seller may only get one offer on their property. And that may take a long time to get that one offer. It’s called the seller buydown. The whole idea for the seller buydown is to get money back from the seller to permanently buydown the interest rate. Most agents will try to negotiate to get money back from the seller in terms of closing costs, but most don’t try to get the money to actually buy down the interest rate. Now keep in mind that your agent should get as much back as humanly possible to help you get into the property. The majority of agents and mortgage professionals would distribute the seller funds to underwriting costs, escrow fees, and loan fees. Not many of them will think to permanently buy down the interest rate on the loan which can significantly reduce the monthly mortgage payment for you. For more tips on how to navigate this changing market, feel free to call us here at Realty Experts as we are here to help. And as always, you can rely on rich.com. Thanks and you have a great day.