Mortgage Glossary
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.
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