What are credits at closing that are subtracted from the final closing costs called?

Credits at closing that are subtracted from the final closing costs are known as Borrower's Credits. This term refers to any funds or adjustments made on behalf of the borrower that reduce the out-of-pocket expenses at closing. These credits can arise from various sources, including the seller agreeing to contribute towards the buyer's closing costs or from incentives offered by lenders. Such credits are particularly beneficial in making the home purchase more affordable by alleviating the financial burden associated with closing expenses.

Seller's Contributions, while relevant, typically denote the seller's assistance in paying closing costs or providing financial assistance, but they do not specifically refer to credits that reduce the borrower's own costs at closing as directly as Borrower’s Credits do.

Lender Fees pertain specifically to charges imposed by the lender for processing the loan, which would not be subtracted but rather represent a cost to the borrower.

Closing Adjustments refer to calculations made for items like taxes and utilities that are prorated at closing but are not a specific designation for credits that reduce closing costs for the borrower.