Taking the mystery out of financing Now that you've determined how much loan you can afford and found your dream home, it's time to take the mystery out of financing. As you begin to work with a lender, you'll hear many new terms and will be introduced to new procedures. Rate Points Orig.
Discount Points Discount points are equal to a percent of the loan amount.
If you pay more points it will lower the interest rate. Paying points can be good if you plan on living in the home for more than three years and the points may be tax deductible. Loan Origination Fees Origination fees are often expressed as a percentage. Golden Mortgage does not charge an origination fee on most conventional loans. Some lenders may only tell you about the discount points and loan origination fees when you ask about closing costs or specifically the discount points associated with the interest rate quote.