Frequently Asked Questions

What is a rebate/credit?

A rebate is a credit to the borrower by the lender for taking an interest rate higher than the zero-point rate. The lender hopes to recapture the amount paid by collecting a higher interest rate over the life of the loan. Rebates may be used to offset any closing costs, including the guaranteed lender fee, appraisal fee, escrow & title fees, or recording fees. This is how you get to zero closing cost transactions, where the rebate is enough to cover all transaction related fees.

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