Lender Credit
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A lender credit is money the lender contributes toward the borrower's closing costs, usually in exchange for a slightly higher interest rate.
What Lender Credit means
It reduces upfront cash needed at closing in trade for a higher long-term rate. The opposite of paying points, it suits buyers short on cash or planning to move soon. The tradeoff appears on the Loan Estimate.
Florida example
A buyer low on cash accepted a $4,000 lender credit on a Jacksonville purchase, raising the rate slightly but cutting the cash needed at closing.
What it is
A lender credit is money the lender gives toward your closing costs in exchange for a slightly higher rate. It lowers your cash to close.
It is the opposite of paying points.
When it helps
A lender credit suits buyers short on cash who plan to sell or refinance before long. It trades upfront savings for a higher rate.
We show the math on credits versus points. Apply now and we will find your best mix.