Are You Owed a Credit When Refinancing or Selling? If you purchased a home when rates were higher and you are now thinking about refinancing or selling, you may have participated in a rate buydown program where the seller gave you funds to lower your payment for years 1, 2, or 3.  This is called a Temporary Buydown, as it temporarily reduces your payment. Many clients ask me what happens to these funds if they have not been used. In most cases, the outstanding balance in your buydown escrow will be applied to your principal balance.  If you are considering refinancing or selling, let’s talk first!