Efficiently use buyer’s agent rebate - Options?

[Meghanath Reddy]

Hello BP, I’m buying 750k house in Lynnwood, Seattle and I am looking to put 10% down. So applying for 675000 as the loan amount.

My realtor is going to give me 2% which is 15k as rebate. The builder is going to give me $15000 toward closing costs If I choose their lender.

My initial loan details: 675k loan, 3.25% interest. PITI: 3796 including PMI of 128.

Lender came back suggesting buying down PMI and interest rate with discount points and offered an improved loan after buying out PMI and 1.25 discount points: Used 15k builder credit + 8500 of agent rebate. Still 6500 left over.

New loan details: 675k loan, 2.85% interest. PITI: 3531. PMI bought out completely. Looks like I'll still be leaving money on the table still.

1. What can the buyers agent rebate be used for?

2. Can I not get it as just cash, if so are they any tax expenses for agent and me?

3. If I buy points, is there a limit as to how many points I can buy down?

4. Please advise if any other negotiating points I could use or talk about with my lender?

I’m worried that I’ll not be able to make proper use of the $30000 since I may not be able to utilize it all for closing. Any help/advice would be greatly appreciated. Any advice what to do?