If one lender offers credits, how do I normalize both quotes to apples-to-apples?

How do I compare offers when one lender gives credits?

You want to compare mortgage offers when one lender provides credits and another doesn't. Lender credits reduce your upfront closing costs but typically come with a higher interest rate, making direct rate comparisons tricky.

Start with the loan estimates both lenders provided. Look at Section A for the interest rate and monthly payment, then Section B for closing costs. The lender offering credits will show a negative number in Section J (lender credits), which reduces the cash you need at closing but usually means a higher rate.

To compare fairly, calculate the total cost over time. Add your monthly payments for the first few years you plan to stay in the home, then add any remaining closing costs after credits. The lender can run scenarios showing both options—taking credits with a higher rate versus paying more upfront for a lower rate.

Share both loan estimates with each lender and ask them to explain the trade-offs. They can show you the break-even point where the lower rate option starts saving money compared to taking credits.