| If you are in the process of applying for a new | | | | which are your lender fees. Discount points are |
| mortgage or refinancing your existing mortgage | | | | paid in exchange for a lower interest rate or |
| there are a number of fees you will have to pay | | | | more favorable loan terms. One discount point |
| to secure the loan. Here are the basics of costs | | | | equals one percent of the loan value, paid at |
| and terminology associated with your taking out a | | | | closing. The advantage of paying discount points is |
| new mortgage. | | | | that you will be able to deduct this fee from your |
| Mortgage Interest Rates | | | | Federal income tax. |
| The interest rate you will qualify for on your | | | | Closing Costs |
| mortgage depends on the lender you choose, | | | | Closing costs encompass a number of different |
| your credit score, and prevailing interest rates. | | | | fees, some paid to the lender, some to the title |
| Qualifying for the lowest rate will save you | | | | company, and others to the attorney. Closing |
| thousands of dollars in finance charges. When you | | | | costs vary from one lender to the next so it is |
| compare loan offers it is important to compare all | | | | important to compare these expenses, find out |
| aspects of the mortgage, not just the interest | | | | who they are paid for, and negotiate with your |
| rates. If you focus only on interest rates you will | | | | lender for more favorable fees, especially if you |
| probably overpay on the lender fees and closing | | | | have good credit. You can learn more about |
| costs. | | | | finding the best mortgage without overpaying for |
| Discount and Origination Points | | | | the financing by registering for a free mortgage |
| Points come in two flavors: discount points in the | | | | guidebook. |
| form of pre-paid interest and origination points, | | | | |