Compare lender credits without calling them free money

A lender credit can reduce upfront cash while being associated with different loan pricing. Compare the credit together with the rate, payment, and other costs. Do not treat a lower cash-to-close figure as an isolated saving without checking what changed in the offer.

Put the credit on the same page as the tradeoff

The CFPB’s points-and-credits guidance explains the relationship between upfront costs and interest rate. Your worksheet should preserve that relationship instead of listing the credit as a benefit separate from the loan terms.

A fictional two-scenario table

The $45 monthly difference totals $1,620 over 36 months and $2,700 over 60 months. A simple $2,000 ÷ $45 calculation gives about 44.4 months. This illustration omits other cost differences, balances, tax effects, and time value; it is not a recommendation.

Ask for the complete basis

Compare these lender-credit scenarios.
Keep the credit, rate, payment, fees, term, and loan amount together.
Flag differences that prevent a like-for-like comparison.
Show simple arithmetic only from supplied figures.
Do not describe the credit as free money or select a scenario for me.
Written figures: [redacted excerpts and locations]

Confirm the missing terms

Ask which charges the credit offsets, whether the quotes share the same lock basis, and whether any other fees changed. A neat summary is incomplete if it omits the term that explains the credit.

Use the comparison to prepare questions for the lender and an appropriate adviser. Your cash constraints and intended holding period matter, but AI should not infer them or tell you which tradeoff to accept. Keep the credit’s source line and the quote date with the worksheet so later revisions do not get mixed into the original scenario.