Posts

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

Why We Hate Paying Points (Or Think Buyers Shouldn’t)

Borrowers constantly ask if they should pay points or origination fees to buy down a loan. Our constant refrain is no, and here are the reasons why: 1. Borrowers get too little bang for their buck. In the current market, paying a point will often only improve the rate by as little as 1/8 percent, […]Read More

Why We Hate Paying Points (Or Think Buyers Shouldn’t)

Borrowers constantly ask if they should pay points or origination fees to buy down a loan. Our constant refrain is no, and here are the reasons why: 1. Borrowers get too little bang for their buck. In the current market, paying a point will often only improve the rate by as little as 1/8 percent, […]Read More