The total amount required to purchase a property, including the price and all associated fees such as closing costs, attorney's fees, loan fees, appraisal costs, title insurance, and discount points.
A buy down involves paying extra upfront to a lender in exchange for a lower interest rate on a mortgage loan. This lower rate can apply to either the entire loan term or part of it.
Discount points are amounts paid to the lender at the time a loan is originated, often by the seller, to bridge the gap between the market interest rate and the lower face interest rate of the note.
A discounted loan is a financial instrument that is offered or traded for less than its face value. It involves an initial discount from the loan's nominal amount, effectively making it cheaper for the borrower at inception.
Mortgage discount refers to the amount of principal that lenders deduct at the beginning of a loan as part of the loan agreement terms, which is often linked to discount points.
An origination fee is a charge imposed by lenders on borrowers, particularly for mortgage loans, to cover the costs associated with issuing the loan. It can encompass a variety of expenses such as the salesman's commission, credit check, appraisal, and title expenses.
