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An interesting option that buyers are overlooking these days is asking the seller to pay discount points to reduce the interest rate on a loan.  Many buyers look at just reducing the price through negotiation yet forget that a discounted interest rate alone or in addition to a reasonable price negotiation might end up saving them many more dollars in the long run.  For example:

Example: A buyer looking at a home in Boulder for $675,000.  He/she has 20% for a down payment.  They negotiate $25,000 off of the price, get the home for $650,000 and feel great about the discount.  Their loan amount is $520,000 which is a jumbo and they go for a fixed rate for 30 years which at 7.5% (jumbo fixed rates are expensive).  Their monthly principle and interest payments are $3,636 per month and after five years they have paid $190,000 in interest and reduced their principle balance by $28,000.  They now owe $492,000.

versus

They offer $670,000 for the home and ask the seller to pay four discount points to reduce their interest rate by 1/2%.  They obtain an adjustable rate mortgage which is fixed for the first five years at 5%.  Their payments are $2,877 principle and interest per month.  This is a monthly savings of $759.  After five years they have paid $129,000 in interest and reduced their principle balance by $44,000.  They now owe $492,000 yet they saved $45,500 in payments. 

The net to the seller is the same either way yet the total discount to the buyer with the adjustable rate and discount point option is $70,500 instead of just $25,000. 

To some this is a clear as day.  To others it is probably as confusing as the Chinese dictionary.  My suggestion is you speak with someone like Dennis Stengel at Dominion Mortgage http://www.dominionmtg.com/officers.stengel.shtml.  Contrary to what the media is telling you, these type loan progams are still available and make lots of sense especially considering the cost of a conventional fixed rate mortgage these days.  Dennis tells me they can loan up to $650,000 (great for jumbo borrowers) at a fixed rate of 5.75% for 5 years (the rate will change daily of course).   No financial penalty or added costs for credit scores as low as 680.