Is the builder incentive real?
$15k sounds great until you do the 30-year math.
Example situation
“Builder is offering $20k in closing cost incentives on a $480k home, but only if the buyer uses their preferred lender. Their lender quoted 7.125%. My buyer's lender has them at 6.5%. The builder says the incentive covers the rate difference. I don't think that's true but I can't prove it.”
Judgment —
The builder is wrong. The incentive doesn't cover the rate difference — not even close.
Reality —
On a $480k loan, the difference between 6.5% and 7.125% is $206/mo. Over 30 years, that's $74,160 in extra interest. The builder is offering $20k to buy $74k in additional cost. That's a 3.7x markup disguised as a gift. Your buyer's own lender at 6.5% with zero incentive still wins by $54k over the life of the loan.
Cost —
If your buyer takes the builder's deal, they get $20k at closing but pay $206/mo more forever. Even if they refinance in 3 years, they've already paid $7,416 extra — and refinancing isn't guaranteed. The incentive is real cash, but the cost is hidden in the monthly payment where nobody looks.
Move:
Show the builder both loan estimates side by side. Ask for the $20k incentive with no lender requirement — or ask for a rate buydown to 6.5% through their lender instead. If they say no, keep your buyer's lender and negotiate $10k in price reduction. The builder needs to close too.
Real OneShot output — 1 input, 1 answer, no comfort