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What tradeoff can accompany a lender credit toward closing costs?

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Augustana College

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Morgan State University

General mortgage education for readers considering housing near Morgan State University The following questions explain general CFPB mortgage guidance. They are not Morgan State University programs, financial aid, endorsements, or individual borrowing advice. Your actual Loan Estimate, lender terms, property and circumstances determine what applies; no loan eligibility, rate, approval or transaction outcome is established. CFPB explains that a lender credit offsets closing costs but may be exchanged for a higher interest rate. Ask about a similar loan without the credit and compare both the interest rate and total loan cost. The rate/rebate tradeoff is conditional; actual offer and total-cost disclosures control. CFPB Loan Estimate Explainer. Publisher last modified October 29, 2025; retained evidence observed October 18, 2026.

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