Of all the consumer incentives that sellers will offer prospective purchasers, one of the most effective is a buy down of their interest rate. Usually the investment is far less than a typical price reduction, and yet it can have a dramatic affect on the new buyer’s payment. Additionally, it enables the seller to yet again differentiate their property. A mortgage lender can estimate the cost (usually 1 discount point will correspond to a 1/4 or 1/8th drop in interest rate, depending on market conditions). Be sure to check Regulation Z before advertising finance terms!