Here's a down to earth explanation of mortgage discount points; also known as origination fees. Points can actually save you money!

The 15 year fixed rate mortgage is a popular choice of homeowners who wish to refinance their current mortgage. Many prospective applicants are surprised to learn that the interest rate can be "bought down" with discount points. Many lenders are able to "roll in" the discount points or can even pay the points on behalf of the borrower. #currentinterestrates

Did you know that mortgage points can lower your interest rate? It's true! If you are willing (and able) to prepay some of the interest at settlement, the lender can offer you a lower interest rate since you are paying some of the interest upfront. #pointsonamortgage

You want the lowest interest rate for your mortgage, that's understandable. A low interest rate means a lower monthly payment each month. But did you know that a lender can quote you an interest rate but not "guarantee" that low rate? It happens all the time. #mortgageratelock

Compare lenders for not only the “lowest” interest rate, but also the ideal mortgage terms. Some lenders may have a slightly higher interest rate, but may offer lower closing costs. Here is a comparison chart of lenders who are anxious to speak to you about financing your new home or refinancing your current mortgage. #interestratesforhomemortgages

Use the FHA interest rate chart to compare today's FHA 30 & 15 year interest rates. FHA interest rates are usually lower than conventional interest rates because the FHA loans are backed by the federal government. The FHA down payment can be as low as 3.5% & there are no 1st time home buyer requirements. #fhainterestrates

It’s true, lenders adjust the interest rate on your mortgage based on your credit score and your down payment (or equity with a refinance). The term for the interest rate adjustment is called "loan level price adjustment", LLPA for short. The following chart illustrates the interest rate adjustment for a conventional loan. The credit score range can be found on the left side of the table. Along the top is the down payment or equity in the home for a refinance. #interestratesandcreditscore

A 7 year adjustable rate mortgage has an interest rate that is "fixed" for the first 7 years & then adjusts annually for the next 23 years. The 7/1 interest rate is usually lower than the 30 year interest rate. The benefit is a lower monthly mortgage payment (at least for the first 84 months) & higher borrowing capacity. #7/1armmortgagerates

A 5 year adjustable rate mortgage (5/1 ARM) is a mortgage with a fixed interest rate for the first five years, actually, the first 60 payments, then the interest rate can adjust each year thereafter. The new interest rate can go up or down. The 5/1 arm interest rate is typically lower than the traditional 30 fixed rate. #5/1armloan

A 3 year adjustable rate mortgage has a fixed rate of interest for the first 3 years & then adjusts annually for the next 27 years. The interest rate is usually lower than the 30 year & 5/1 arm interest rate. The benefit is a lower monthly mortgage payment (at least for the first 36 months) & higher borrowing capacity. #3/1armmortgagerates

Compare the 30 year VA mortgage rates & estimate the VA loan amount & monthly mortgage payment with taxes & insurance with the VA mortgage calculator. VA mortgages do not require a down payment (in most cases) & monthly mortgage insurance. VA interest rates tend to be lower then other other loans. #30vainterestrates

The 20 year fixed interest rate is lower than the 30 year rate, but higher than the 15 year interest rate. The 20 year fixed rate mortgage makes sense if you want to pay off the mortgage quickly. A monthly over payment on top of the required monthly payment can payoff the mortgage even faster. #20yearinterestrates

Compare the 15 year VA mortgage rates & estimate the VA loan amount & monthly mortgage payment with taxes & insurance with the VA mortgage calculator. VA mortgages do not require a down payment (in most cases) & monthly mortgage insurance. VA interest rates tend to be lower then other other loans. #15yearvainterestrates

The annual percentage rate is NOT the loan rate that you will pay on your mortgage loan. The Truth In Lending Disclosure is required under the Truth in Lending Act enacted June 29, 1968. This legislation was designed to prohibit larcenous lending practices (i.e. bait and switch, also known as lying). #aprinterestrate