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We received a construction loan Closing Cost Estimate where they have nothing listed under Origination fee but under Commitment fee there is a $1225 charge. Then, next to discount points (which is usually what the borrower pays to bring down the interest rate), there is a $2250 credit. That leaves our total origination charge with a $995 credit. According to this, they are going to pay us to take a loan out for that interest rate. If we do 4.125%, they will charge a $1255 commitment fee with a credit of $1125 so our total origination charge for 4.125% will be $130. This seems suspicious to me as we have never had that happen before so I wanted to see what other people thought.
It's very common to have credits with different rates these days. Loans are different than what they used to be. They gives the borrower options. They can pick the better rate, or the better credit back.
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