Paying two points for the buyer's loan as a concession by the seller is an example of:

Paying two points for the buyer's loan as a concession by the seller is an example of:

• A. A post-closing fee
• B. A loan increase
• C. A concession by the seller to the buyer
• D. A title insurance premium

Answer: (C)

In real estate financing, a seller can help the buyer by covering part of the loan costs. When the seller pays two points to the lender to reduce the buyer’s interest rate, that’s a seller concession—the seller is providing financial assistance to the buyer at closing. This is distinct from a post-closing fee (charged after closing), a loan increase (the loan amount would go up, not down), or a title insurance premium (a separate closing cost for title protection). The main idea is that the payment of points by the seller is a negotiated concession to the buyer to improve financing terms.

In real estate financing, a seller can help the buyer by covering part of the loan costs. When the seller pays two points to the lender to reduce the buyer’s interest rate, that’s a seller concession—the seller is providing financial assistance to the buyer at closing.

This is distinct from a post-closing fee (charged after closing), a loan increase (the loan amount would go up, not down), or a title insurance premium (a separate closing cost for title protection). The main idea is that the payment of points by the seller is a negotiated concession to the buyer to improve financing terms.