Owner financing . A property purchase transaction in which the property seller provides all or part of the financing. Insurance paid for by borrowers that protects the lender against loss if a borrower fails to repay the loan. Some lenders will charge one point to originate or start your loan. Paying extra points at closing can reduce your interest rate for the life of your loan.
Points are also tax-deductible.
Prepayment penalty . A fee that may be charged to a borrower who pays off a loan before it is due to be paid off. A written agreement guaranteeing the home buyer a specified interest rate provided the loan is closed within a set period of time. The lock-in also usually specifies the number of points to be paid at closing. Housing Finance Agency loan programs.