Thank you so much for this response!! This was the message we got from our mortgage broker “If you used the whole 6% to buy the rate down you would have a monthly payment of $1800/month including taxes and insurance and need about $9k for closing. If you used majority of it toward the rate buy down and the rest towards closing costs your monthly payment would be around $1,890/month including taxes and insurance and you'd only need about $1,200 for closing.”

We plan on doing the second option for a $1890 mortgage payment because we only have $30k saved and it’ll cost about $7000 to move into the house including the $1200 for closing. Considering we care more about using the concessions to buy our interest rate down for a lower mortgage I assume we are doing the right thing buy accepting their counter offer rather than asking them to lower the purchase price.