Took a look at our most recent GFE last night and I saw the following:
Origination Charges - $9520
Lender Credit given for 3.375% rate - ($8100)
Adjusted Origination Charges - $1420.
Our builder gives us 3% towards closing costs if we use their lender. Is our 3% credit being masked by us taking a higher rate? To me, the lender isn't "giving" us anything as we are taking a higher rate. So shouldn't we get 3% on top of this?
Thanks, Booner. I edited the OP in hopes to get my point across a bit better. I don't want to pay an arm and a leg at closing when I shouldn't have to.
You are right in that the lender credit is created by increasing your interest rate.
That is how all lender credits work.
If you are getting a fixed rate 3.375% interest for 30 years AND a credit of over $8000 at closing, then you are doing great. In fact, it looks like you were charged very little in your rate if anything at all.
Normally the lender credits are for much smaller amounts with a larger interest rate bump.
How much would your interest rate be if you didn't get the credit?
That's the thing. We were only quoted the 3.375%. We weren't offered anything below that, nor did we ask to take negative points, but the middle check box on #2 (Section A) of the GFE was checked along with an $8100 credit.
i was quoted 3.375% without any credit taken yet. It can go up to 3.775% if i choose for $4k back in credit. Wish i had your scores and credit to work with....