Posted on: 10th Sep, 2009 09:48 am
WHAT ARE DISCOUNT POINTS?
Points may be DISCOUNT POINTS or ORIGINATION POINTS.
DISCOUNT POINTS are paid to the investor to make the interest rate lower. Basically, they are prepaid interest to the mortgage investor and because you prepay some of the interest, the rate is lower.
ORIGINATION POINTS are paid to and are income for the mortgage originator. They could serve the purpose of making the rate lower, but, they are paid to the originator, not the investor.
DISCOUNT POINTS are paid to the investor to make the interest rate lower. Basically, they are prepaid interest to the mortgage investor and because you prepay some of the interest, the rate is lower.
ORIGINATION POINTS are paid to and are income for the mortgage originator. They could serve the purpose of making the rate lower, but, they are paid to the originator, not the investor.
these occurences are tiresome, i think. i guess your patience hasn't yet worn thin, john.
Discount points are fees paid to a lender at closing in order to lower your mortgage interest rate
hi'
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Discount points helps in lowering interest rates
Catherine
You asked the same questions???
You asked the same questions???
i have a feeling there are bots among us. why don't we just hand out ditto marks to some of these people so they can hit one simple key in order to add their "expert opinions"??
i'm saying, again, that this is most tedious.
i'm saying, again, that this is most tedious.