If a seller pays for a buydown, where does that show up on the closing docs?

Where does a seller-paid buydown show up on closing docs?

You're looking at where a seller-paid buydown appears on your closing documents. The seller's payment for a rate buydown typically shows up in two main places on your Closing Disclosure: Section L (Seller Credits) and the loan details section at the top of page one.

A temporary buydown reduces your interest rate for the first year or two of your loan, then the rate increases to the original note rate. When the seller pays for this buydown, they're essentially funding an account that subsidizes your lower payments during the reduced-rate period. The total cost of the buydown appears as a seller credit on your Closing Disclosure, often listed as "Buydown Fund" or "Interest Rate Buydown" in Section L.

Your loan details on page one will show both the initial reduced rate and the final note rate, along with payment amounts for each period. The Loan Estimate you received earlier should have shown these same details, so you can compare them to confirm everything matches.

If something doesn't match your Loan Estimate or you have questions about how the buydown is structured, ask your lender to walk you through the specific line items before closing.