Buying a house, closing costs question

Factual Questions
1

I got my loan application today and while looking through it, I found the part about closing costs. In the section titled Minus Money Paid by you or for you, there is something called “Subordinate Financing Amount” and it’s total amount is $3,000. The way I read it, it appears that this amount is subtracted from the total closing costs, along with the seller’s concession, earnest money deposit, etc.

So am I reading this right? Is this subtracted from the closing costs or did they mess up? I’ll probably find out in a few days when talking to the bank, but if this is true, I don’t owe any closing costs. Sounds too good to be true, but google fails me at the moment.

2

I believe that “Subordinate Financing Amount” is another term for a second mortgage. Did you take one out to cover the closing costs?

3

Not that I can remember. She did say she was going to try to get me down payment assistance. Maybe that has something to do with it?

4

Could be, just be aware that you will pay interest on that assistance - and help the bank make even more money. If you don’t need it, skip it and pay the closing costs.