Rates, Costs, and Payments
Discount points and lender credits
Short answer
Discount points are upfront charges associated with a pricing option, while lender credits can offset eligible closing costs in exchange for another pricing structure. The exact tradeoff is transaction-specific.
Detailed explanation
Discount points are upfront charges associated with a pricing option, while lender credits can offset eligible closing costs in exchange for another pricing structure. The exact tradeoff is transaction-specific.
Mortgage pricing combines market conditions with borrower, property, loan, and timing factors. A benchmark or website example cannot replace transaction-specific pricing and required disclosures.
What this means for you
Compare upfront cost, rate, payment, break-even period, and expected holding period. Paying more upfront is not automatically a win, and a credit is not free money.
Important limitations and exceptions
- Availability, eligibility, pricing, documentation, and state coverage vary. This article is general education and is not an approval, rate quote, Loan Estimate, commitment to lend, or recommendation for a specific consumer.
Related Imperium resources
A linked program is not a statement that it is suitable, available, or approved for a particular consumer.
Primary references
Educational-information disclaimer
This article provides general mortgage education. It is not legal, tax, investment, or financial-planning advice; an approval or credit decision; a commitment to lend; a rate lock; a Loan Estimate; or a recommendation for your specific circumstances. Consult the appropriate licensed or independent professional for transaction-specific guidance.