Buyer Rebate
Calculator.

1. Your rebate amount is the starting number.

This is the cash Beycome credits back to you at closing. It equals the buyer agent commission minus Beycome's 1% fee. On a $400,000 home with a 3% commission offered, that's $8,000 back in your pocket. If the commission is exactly 1%, the rebate is $0. If it's below 1%, no rebate applies — Beycome's minimum fee takes the entire commission.

The rebate isn't income — it's a credit at closing. Most lenders treat it as a seller concession applied against your costs. You can use it toward discount points, closing costs, or principal reduction. The calculator assumes you apply it entirely to discount points for the buydown estimate.

2. Points purchased = how many rate discounts you buy.

One discount point costs exactly 1% of your loan amount. So on a $320,000 loan (80% of $400,000), one point costs $3,200. If your rebate is $8,000, you can buy 2.5 points. The calculator shows you how many points your rebate covers — and rounds to the nearest 0.25 point since lenders typically price points in quarter increments.

Not all points are equal. In a high-rate environment, each point buys more rate reduction than in a low-rate environment. The default assumption of 0.25% per point is the industry standard — but your actual rate reduction per point will be quoted by your lender. Adjust the "rate reduction per point" field to match your specific loan offer.

3. Beycome rate = your actual mortgage rate after buydown.

This is the interest rate you'll pay for the life of your loan if you apply the full rebate to discount points. It's simply your input rate minus (points purchased × rate reduction per point). A lower rate means a smaller monthly payment every single month — and that compounds into significant savings over time.

Even a 0.5% rate reduction might seem small on paper. On a 30-year $320,000 loan, the difference between 6.5% and 6.0% is $104/month — and $37,440 in cumulative interest savings over the full term. That's real money that stays in your life instead of going to the lender.

4. Monthly savings = what you keep every month, forever.

This is the difference between your standard monthly P&I (principal and interest) and your new buydown monthly P&I. There's no break-even to wait for here — unlike a refinance, you paid nothing extra to get the lower rate. The rebate covered the cost. Every month from day one, you're paying less.

5. Cumulative interest savings = the full picture.

The table at the bottom shows how your interest savings compound at 1, 5, 10, 15, 20, and 30 years. The 30-year number is the true total if you hold the loan to maturity. But the shorter windows show how quickly the savings add up — by year 10, you've kept tens of thousands extra compared to a buyer who paid traditional commission.

The hidden commission in every home purchase.

In a traditional real estate transaction, the seller pays two commissions: one to their listing agent (typically 2-3%) and one to the buyer's agent (typically 2-3%). Combined, that's 5-6% of the purchase price paid out of the sale proceeds — which means it's baked into the price you pay as a buyer.

On a $400,000 home, the seller might pay $24,000 in commissions. Of that, $12,000 goes to your buyer's agent. You never see it as a line item — it's invisible in the sale price. But it's real money that affects what you pay.

How Beycome's buyer rebate works.

Beycome charges 1% instead of the traditional 3% buyer agent commission. The seller still offers their standard commission (say 3%), but instead of all 3% going to the buyer's agent, Beycome keeps 1% and credits the remaining 2% back to you at closing. That's your buyer rebate.

The rebate is applied at closing as a credit — it reduces the amount you need to bring to the table. You can direct it toward discount points (to lower your rate), toward closing costs (to reduce upfront cash), or toward a principal reduction (to lower your loan balance from day one).

The CFPB explains buyer rebates and confirms they are legal in most U.S. states. They are subject to lender approval — some loan programs limit seller concessions, which is how lenders classify rebates. Check with your loan officer to confirm your specific program allows it.

The math: from commission to credit.

Rebate = (Buyer agent commission % − 1%) × Purchase price

If the commission is 3% and the purchase price is $400,000:

That $8,000 is yours at closing — to use however makes the most sense for your situation. The buyer rebate calculator above shows you exactly what that $8,000 can do if you apply it to discount points to buy down your mortgage rate.

Who is eligible?

Buyer rebates are legal in 40+ U.S. states. They are not allowed in a small number of states including Alaska, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee — where commission rebates to buyers are either prohibited or heavily restricted. Beycome operates in states where rebates are permitted.

Rebate amounts depend on what commission the seller has offered. In markets where sellers offer lower buyer agent commissions (below 2%), your rebate will be smaller. In some cases, if the offered commission equals Beycome's 1% fee exactly, the rebate is $0. If it's below 1%, a minimum fee of $1,599 applies to the buyer.

What is a mortgage discount point?

A discount point is a prepaid fee paid to the lender at closing in exchange for a permanently lower interest rate. One point equals 1% of your loan amount and typically reduces your rate by about 0.25%. The CFPB explains discount points and when they make sense.

Normally, you pay for points out of pocket at closing — real cash on day one. With the Beycome buyer rebate, you're not paying out of pocket. The rebate covers the cost. That changes the economics entirely: instead of asking "is it worth it to pay $8,000 upfront for a lower rate?", the question becomes "what do I do with $8,000 I'm getting back at closing?"

The math behind rate buydowns.

The standard amortization formula gives you the monthly P&I payment for any rate and loan amount:

Where M is the monthly payment, P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of months. A lower rate means a smaller r, which means a smaller monthly payment — permanently, for the life of the loan.

The cumulative interest savings over any time horizon is simply:

That's the formula the calculator uses for the 1-, 5-, 10-, 15-, 20-, and 30-year rows in the savings table.

Temporary vs. permanent buydowns.

There are two types of rate buydowns. A permanent buydown (what this calculator computes) locks in the lower rate for the entire life of the loan. You pay for points at closing and the rate stays lower forever — or until you refinance or sell.

A temporary buydown (like a 3-2-1 or 2-1 buydown) gives you a lower rate for the first 1-3 years, then the rate steps back up to the full rate. Sellers sometimes offer these as concessions to help buyers qualify. They can be useful when rates are expected to fall — you plan to refinance before the buydown expires — but the permanent buydown from a Beycome rebate delivers savings for as long as you hold the loan.

What rate reduction per point should I use?

The industry standard assumption is 0.25% rate reduction per point — that's the calculator's default. In practice, the actual reduction varies by lender, loan type, and market conditions. Some lenders offer 0.2% per point in competitive markets; others may offer 0.3% when rates are high and they're hungry for business.

The only way to know your exact number is to ask your lender for a loan estimate with and without points. Get the rate with 0 points and the rate with 1 point — the difference is your lender's actual reduction per point. Plug that number into this calculator for a precise estimate.