Tag Archive for: discount points

Deciphering Bullsh*t Rate Quotes

UNFORTUNATE INFLATION UPDATE! We have been expecting a very positive inflation number on May 10th for months now for a variety of reasons, as set out by Barry Habib numerous times. BUT, Habib and others are now expecting a less positive number primarily because oil prices spiked briefly in April. We will still see very […]Read More

Why I HATE Permanent Rate Buydowns

“Homebuyers prefer permanent buydowns rather than temporary buydowns.” That was a headline today in this National Mortgage News article. So, even though I just blogged about this in November, I am hitting it again because “I hate permanent interest rate buydowns.” According to the article, 57% of buyers in the third week of January paid […]Read More

Understanding Lender Credits In Home Mortgages

One of the most common questions homebuyers have when taking out a mortgage is what lender credits are and what they can be used for. Knowing this information can help you make informed decisions about your home purchase and get the best possible deal. Let’s look at lender credits and how they can help you […]Read More

Why I Hate “Points” Now More Than Ever (Permanent vs. Temporary Buydowns)

I just read a blog by a mortgage underwriter in which she was explaining how loan officers are stupid because they are not explaining the benefits of “Permanent Rate Buydowns” (vs. “Temporary Buydowns”) to listing agents. Ironically though, she may be the one who is lacking on the intelligence front. A “Permanent Buydown” is where […]Read More

Points, Discount Points, & Origination Fees – Avoid Them In 2022!

Even though distinctions can be made, Points, Discount Points, and Origination Fees are effectively the same thing, and they are used interchangeably. A “point” typically represents 1% of the loan amount. So, a 1/2 point is 1/2% of the loan amount, and so on. Paying a full point will typically “buy down” an interest rate […]Read More

Points & Origination Fees – And Why We Discourage Them

I recently blogged about 5 Misleading Rate Quote Tricks that everyone should be leery of and received some questions from our readers. WHAT ARE POINTS? Some readers asked about the $9,000 of “points” that another lender had tried to hide in the borrower’s new and larger loan. I touched on this last year and am […]Read More

The Difference Between Discount Points & Origination Fees

Discount Points and Origination Fees are two common industry terms that can be easily confused. What Are Discount Points? Discount points are fees you can pay to lower your interest rate and thus lower your monthly mortgage payment. Paying discount points is commonly referred to as “buying down” your interest rate. The more you pay […]Read More