A system and method of structuring and financing a real estate transaction, such as a residential real estate transaction. A seller can maximize a selling price while minimizing the loan payments of the buyer over a predetermined period of time. A seller can purchase a financial instrument as seller paid points that can result in a reduction in the effective interest rate for the buyer. The interest rate reduction can be effective over a predetermined period of time, usually less than or equal to five years. The buyer can present the financial instrument to a lender when applying for a mortgage. The lender can redeem the financial instrument for the amount of seller paid points and supplement any mortgage. The lender can then reduce the buyer' s loan payments over the predetermined period of time, based on the amount of seller paid points.