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No money can be pocketed. The lender is giving offering a lender credit for your situation which could result in a slightly higher interest rate. If you are receivng 3% seller's concession and you have already provided a down payment you do not need to seek a lender credit and possibly get the best rate for your situation. It is always best to get a couple of quotes so that you may compare side by side so that you may be able to make an educated decision.
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