Tag Archive for: discount points

Deciphering Bullsh*t Rate Quotes

As loan officers fight tooth and nail for business in a very low-volume environment, we are seeing desperation on the rate-quote front … again. We saw so much nonsense last week alone that I felt compelled to blog about it again.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 […]Read More

Understanding Lender Credits In Home Mortgages

Lender credits are discounts offered by the lender that apply to closing costs and reduce the amount of money you pay at closing.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” […]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 […]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 […]Read More

The Difference Between Discount Points & Origination Fees

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 in discount points, the lower your interest rate will ultimately be.Read More