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What is the normal range for loan discount fee for a loan re fi loan for under $150,000?

  • June 12 2009 - San Bernardino
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Answers (4)

On a Conforming 30F $150,000 loan at today's rate of 5.25% your payment is $828 P&I.
At 4.25% the payment is $738 P & I. Your cost in points to buy thid down 1% is about $4,800.
It will take you 53 months to break even. .... Good luck, Rudi
  • June 12 2009
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The first point is usually called an origination fee.  This can range anywhere from 0 to 1%.  Anything over that first 1%, is noted as a discount fee.  Essentially you are buying your rate down.  Depending on the rate and points you agreed to, will determine what the discount fee will cost.Rule of thumb, the lower the rate, the higher the points/discount fees.

You can have your loan officer run different scenarios to determine whether paying points is really feasible based on your loan amount.  The time to recoup the additional may not justify the costs, especially if you do not plan to stay in the house.  At least by doing this, you will have a basis of comparison.
  • June 12 2009
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the discount fee "discounts" or lowers your rate, the more you pay the lower the rate.  The origination fee normally ranges from 0 to 1.  Hopefully that answers your question.
  • June 12 2009
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Profile picture for daveskow
this totally depends on what rate you choose to lock in ...the lower the rate , the higher the loan discount fee
  • June 12 2009
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