If you are buying, your refund will be applied to your transaction’s closing costs. Any additional refund that exceeds your closing costs will be used to buy down the interest rate of your mortgage. If you don’t need a mortgage, the overage will be refunded within 15 days of closing.
If you are selling, your refund will be applied to the final closing statement. The listing agent fee of 2.5% of the sales price will be discounted by your refund amount.
If you are buying AND selling, you will receive half of your refund as a discount to the 2.5% listing fee and the other half will be applied to the closing costs of your new house purchase. Any additional refund that exceeds your closing costs will be used to buy down the interest rate of your mortgage. If no mortgage is obtained, any overage will be refunded to you within 15 days of closing.
*2.5% is paid to listing agent and 2.5% is paid to selling agent.