When shopping for interest rates on fixed loan products ask your lender about a "Lender paid concession". Like a seller concession where the sellers agree to help a buyer with closing costs by incorporating a fixed dollar amount to help the buyer out, a Lender concession is additional help. With the Lender concession the Lender prices your loan at a specific rate. Let's say that rate is 4.750% and that is a 0 point loan to you the borrower. This is when you either ask for or are offered a concession from the lender to pay closing cost or some dollar amount of them. If the Lender has a price of 100.500, this means on a 300k loan the lender can pay 1,500. dollars toward your disclosed closing costs.

If your closing costs calculate out to say 7,500. then the lender would pay 1,500. toward them. A good situation that can be less or more...depending on what lender you choose. A little secondary marketing gain for you and a little less for the bank or mortgage company. One companies 4.750% is not the same as the other is it? Shop Smart.. Jim Brown, 732.245.5121 Sun National Bank NJ