You probably have your own general philosophy on whether to buy down an interest rate on your mortgage rather than putting more money down. Remember the whole idea of break-even point, where buying points is usually better in the long term but ultimately cost you money if the mortgage doesn't get to that break-even point (which I think it usually around 7 years).

Here's the thing: what if there's an incentive that provides a percentage of the loan amount that can be used however you want? Would you use that "free" money differently than you would your own money? For example, if you normally wouldn't buy down the rate at all, would you seriously consider using it to buy down the rate since it's icing on the cake?

I'm sure you will crunch the numbers and look at it on a case-by-case basis, but I want to know your hunch without knowing any more details, only that you are being gifted money to throw towards the mortgage closing costs somehow.