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Cherie Alvord, Real Estate Pro in 93551

Why are discount points for an FHA jumbo loan different from one lender to another? Isn't it a standard rate?

Asked by Cherie Alvord, 93551 Wed Nov 5, 2008

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1
One Word: Profit.

Not only will pricing be different from bank to bank, but you have to consider that each bank is going to make a specific profit off of each loan they sell, plus each loan officer is going to try and make their determined profit off of a loan. Assuming that you are just referring to discount points that will get a rate below market, then each bank has the ability to price a loan at any level versus the going market rate. That will vary from lender to lender. If you have any questions, please let me know.

Luke Allison
Flagstar Bank
828-777-8828
1 vote Thank Flag Link Wed Nov 5, 2008
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