A seller or builder credit of about $10,600 may lower a buyer’s monthly payment by roughly $585 for the first year of a $450,000 loan. In this market, that kind of math is worth knowing.
With mortgage rates hovering around 7% and Salt Lake County closings down about 10% in September, sellers are offering more in concessions and closing-cost help, and builders are offering some of the largest incentives I’ve seen in several years. The question is how to use them well.
How a buydown works
A rate buydown uses that credit to lower your interest rate. It may be temporary, such as a 2-1 buydown that trims your rate by two points in year one and one point in year two, or it may be permanent. The price of the home stays the same. What changes is your monthly payment.
What the numbers look like
Take a $450,000 loan at 7.25% for 30 years. Principal and interest runs about $3,070 a month. A 2-1 buydown costing roughly $10,600 would bring that to about $2,485 in year one and $2,770 in year two, then back to $3,070. (Illustration only, not a loan offer, and principal and interest only.)
Monthly payment on a $450,000 loan, 30 years
Illustration only, not a loan offer. Principal and interest only.
Put the same $10,600 toward a lower price instead, and the payment drops about $72 a month for as long as you keep the loan. One path saves more up front. The other saves less, but for longer. Which one wins depends on how long you’ll keep the loan, whether you may refinance, and what your budget needs in the first two years.
Questions for your lender
Before you decide, ask your lender whether a seller or builder credit may go toward a temporary or permanent buydown on your loan, and what limits apply. Ask what your payment looks like with a buydown versus the same money as a price cut. And ask what you’d need to qualify for at the full rate once a temporary buydown ends.
The takeaway
Sellers have a stake here too. A concession may help a buyer’s payment without cutting your price, which matters in Daybreak and South Jordan, where new-construction builders compete with resale homes.
Don’t wait for the market to hand you a perfect moment, and don’t build your plan around a rate drop that may not come. Make your move when it makes sense and aligns with your goals, with an agent and a lender who can help you use the incentives on the table.
Source: UtahRealEstate.com MLS data via RapidStats (September 2026). Example is illustrative, not a rate quote or loan offer. Rates and loan terms vary by borrower and lender; this article is general information, not financial advice.
Thinking about a move this winter or spring? I’m happy to pull the numbers for your street or floor plan, no pressure.
Becky “Becks” Nielson
Real Estate Agent, American Dream TV Host, and Daybreak Resident | Becks Nielson Real Estate, KW South Valley Keller Williams | becks@kw.com | (801) 390-9576