If I got an interest rate with zero points what happens to the extra money that the seller has agreed to pay?

Question

I am buying a house and the seller has agreed to pay closing costs to include up to 1/8th pt. If I get an interest rate for example 6.5% w/ zero points, what happens to the rest of that money? Does the seller pay less? Does it go back into the loan amount? or do I just lose out on it? Thanks!

Answer 1

U lose nothing; the seller gains.  check the dif between what you have

been offfered and the cost of a 5 and a 5.5% loan.