Home Buying Dilemma: Need Advice on Best Use of Incentive

[Jithendra Gandikota]

Hello everyone,

I'm currently in the process of buying my primary residence, and I could use some advice. The home price is $480,000, including upgrades. I have an incentive of $25,000 for going with the builder-specific lender, and I'm trying to figure out the best way to utilize it. The home is expected to close in 1st week of Dec.

Here are the options I'm considering:

1. 1. Use the $25,000 towards reducing the home price, which would decrease my yearly property taxes.
2. 2. Use it to buy points to reduce the interest rate.
3. 3. A combination of both.

What do you think is the best option? I'm not sure how the interest rates are going to change in the next few months, so I'm a bit stuck.

Thanks in advance for your input!