Is a Lender Credit Worth the Higher Interest Rate?

Is a lender credit a smart way to save money on your mortgage, or does it cost you more in the long run? In this episode, Bill explains how lender credits work, when they make sense, and when you should avoid them. A lender credit can help cover closing costs, but it comes with a trade-off: a higher interest rate. Bill shares real-life scenarios, including a client who saved $10,000 upfront while only paying an extra $200 per month. He also breaks down who qualifies for lender credits, how loan size, credit score, and financial goals impact your decision, and whether you can refinance after using a lender credit. Here's what we discuss in this episode: 💰 Lender Credit Explained 📊 Higher Interest Rate Trade-Off – Is it worth it? 🏡 When Lender Credits Make Sense ⚠️ Who Qualifies? – Credit score & debt ratio requirements 🔄 Can You Refinance After Using a Lender Credit?   0:00 – Intro 0:46 – How a lender credit works 2:22 – Can anyone get this? 3:23 – When should you? 5:42 – When it doesn't make sense 7:14 – How quickly can you refinance?   CONTACT: Schedule a time to meet with Bill here: https://calendly.com/blitton/ Visit the Smart Mortgage Show website for more podcasts, videos and mortgage info: https://smartmortgageshow.com/ Call: 484-352-4151. Check us out on YouTube: https://bit.ly/3KbUxAF