You should always look at the combination of interest rate and points and get the best deal possible The interest rate is much more open to negotiation on purchases that involve seller financing. Generally, these are based on market rates but some flexibility exists when negotiating such a deal. Both the buyer and seller can place requirements on the table during the negotiation phase of a real estate transaction. Whether the buyers will find the sellers' requirements reasonable, or even achievable, depends on the individuals involved. Financial capabilities usually play a major role in negotiations.
Few people can afford to own two homes simultaneously, except for some all-cash buyers.
Sellers sometimes pay for all or a portion of the closing costs involved in the sale of a property, depending on the local real estate market conditions, the other terms of the purchase contract, and the seller's cash and timing considerations. Seller concessions, as they are referred to in real estate jargon, for at least part of the closing costs are more common in a buyer's market than in a seller's market. Such concessions would generally acknowledged in the form of an addendum to the purchase contract. In addition, most lenders will allow a credit from the seller to the buyer for the buyer's nonrecurring closing costs. But they usually won't allow a credit that reduces the amount of the buyer's down payment, or that includes any of the buyer's recurring closing costs, which include such expenses as fire insurance premiums, interest on the buyer's new loan, property mortgage insurance and property taxes.