Has anyone heard of this mortgage?

I filled out a lowermybills app to see about a refi, and I was
flooded
with calls. One of the brokers gave me this plan as an option. It
goes, that they would charge you a point higher then the market
interest rate, and in return, the will cut you a check for X amount
after you close


i guess the reasoning is that since they get a higher interest loan,
they (the broker) gets paid more in the back end. My loan payment as
a whole goes up like 100 bucks, but i get 3500 back after I close.
The idea is to refi like this and get money back every six months, so
your mortgage as whole goes down


Has anybody heard of this???????????

Is that even legal? I do mortgages myself and know people get money back at closing, but that looks kind of like a kickback. I've personally never done one of these and wonder the legality of it. It sounds like a good idea though to have more money at closing.

A mortgage interest credit is available for first-time home buyers whose income is generally below the median income for the area where they live. The credit is intended to help lower-income individuals afford home ownership. A tax credit is allowed each year for part of the home mortgage interest they pay.

To be eligible for the credit, you must get a mortgage credit certificate (MCC) from your state or local government. Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. You must contact the appropriate government agency about getting an MCC before you get a mortgage and buy your home.

The MCC will show the certificate credit rate you will use to figure your credit. It will also show the certified indebtedness amount on which the interest is eligible for the credit.