CHARLOTTE, N.C. — Homebuyers are cutting a big chunk off of their interest rates, saving hundreds of dollars on mortgage payments. That’s because sellers are more willing to negotiate these days, giving buyers money toward closing costs and repairs.

Data from the real estate brokerage firm Redfin shows sellers nationwide at the end of last year offered the most concessions since July 2020.

First-time buyer Emily Richardson is using her concessions toward what’s called a 2-1 buydown. That’s where she can pay off some of the interest rate up-front, so the rate is 2% lower the first year of the loan, and 1% lower the second year.

“It’s absolutely the thing that sealed the deal for me,” she said. “If I didn’t have this option, I probably wouldn’t have been able to buy the house.”

Richardson’s real estate agent Jeff Clay says it’s saving her about $600 a month her first year, but it’s crucial to financially plan ahead.

“You still have to be comfortable with the rate that it goes back to in year 3-30,” Clay said. “So it’s fantastic that you’re saving a lot of money in those first two years, but you’ve got to know that it is going to go back to that original rate.”

Redfin’s latest market analysis shows home prices across North Carolina were up 5% in December 2022, compared with the previous year.

And, even though sellers are more willing to negotiate, Canopy Realtor Association says it’s still a seller’s market, because there’s not enough available inventory to balance things out just yet.