What can I use the lender credits for?

Thats sounds odd to me as well...If you only need LC of $2500, why not take a lower rate for the life of the loan with lower Lender Credit

Hi this is Tom from Anthemloans.com.I would ask the lender to use it to buy down the interest rate and have the rest be applied to closing costs. Depending on loan size I would think in this market you could get at least .125% lower.Regards,Tom303-549-6958

Hi, Your current lender is correct in the fact that you can use excess lender credit to pay down your principal balance however we rarely do that as it usually makes more sense to reduce the interest rate which will reduce the lender credit. If you email me the following information I can do a full rate/lender credit analysis for you so that you have all the options. Thanks, Corey SeitzCorey_seitz@excelfg.comLoan amount, estimated property value, estimated credit score, type of loan, requested loan term.

It applies to rate buy just elect a lower rate at lock in, mortgage credit certificates, principle pay down. Call with questions Jacob 720.210.7898

Use the lender credit to buy down the rate. You will get your best savings there

NOT TRUE. THe lender credit can ONLY be used for closing costs and prepaids. It CAN NOT be use to reduce the balnce of your loan.

Good advice so far. Your best choice in my opinion is to take a slightly lower rate to eliminate the excess. This is equivalent to buying the rate down, but not with money out of your pocket.

Lender Credits cannot be used toward Principle, Period! It can be used to buy down your rate and pay for closing costs or prepaids. Good Luck!

Your lender is stating their policy correctly. It is not "fishy", even though it sounds strange. Lenders have to follow very exact guidelines in order to be able to sell their loans on the secondary market. Accept their offer, if the rest of the terms meet your needs.

Another reason that your lender offers special terms ($5000 credit), is that they make more profit on loans that fit an interest rate "window" that is more attractive to the secondary market.

All loans have closing costs. Period. The next items is interest rate. Based on the interest rate you pick, your closing costs may be higher, or the lender will give you "credit" to reduce your closing costs. What they are saying is confusing even to us. Why not simply take a lower interest rate? I suggest talking to a local mortgage broker for a second opinion. www.WI-MortgageBroker.com