Rates and Pricing

Small rate or pricing unit equal to one one-hundredth of a percentage point.

Closing costs the borrower pays directly instead of offsetting them through lender pricing.

Upfront charges paid to lower the mortgage interest rate.

ARM limit on how much the rate can change at the first adjustment after the initial fixed period.

Pricing concessions that reduce upfront costs, often in exchange for a higher rate.

Closing costs covered or offset through lender pricing, usually with a rate or credit tradeoff.

ARM limit on the maximum rate increase allowed over the full life of the loan.

A pricing adjustment based on risk-related loan and borrower characteristics.

Documentation that records the locked mortgage rate, pricing terms, and expiration date.

Upfront deposit a lender may require when a borrower locks mortgage pricing.

The date mortgage pricing protection ends if the loan has not closed or funded.

Cost charged to keep a mortgage rate lock active after the original lock period is not enough.

Charge a lender may collect for locking mortgage pricing or extending lock-related protection.

Pricing units that express upfront mortgage costs or credits as a percentage of the loan amount.

Mortgage option quoted without borrower-paid points, often used as a comparison point for rate tradeoffs.

Origination charges expressed as points, usually as a percentage of the mortgage loan amount.

ARM limit on how much the rate can change from one adjustment period to the next.

Time estimate for how long monthly savings must last before paid mortgage points recover their upfront cost.

Mortgage pricing structure where a higher rate can create value used to offset upfront costs.

Mortgage pricing expression showing upfront cost or credit as points relative to the loan amount.

A change to mortgage pricing based on loan, borrower, property, market, or lock factors.

An unfavorable mortgage pricing adjustment that worsens rate, points, credits, or costs.

The period when a borrower has not locked mortgage pricing and the quote can still move.

Mortgage pricing estimate showing a possible rate, points, credits, and lock assumptions before final commitment.

Mortgage pricing structure where the selected rate produces credit value that may offset borrower costs.

A new mortgage pricing lock after a prior lock expires, is canceled, or no longer fits the loan scenario.

Request to change locked mortgage pricing when market pricing or loan circumstances shift before closing.

A lender charge for making, processing, or underwriting the mortgage.

A temporary buydown with a larger first-year reduction and a smaller second-year reduction.

Notice showing the new ARM rate, payment, and effective date before an adjustable-rate change takes effect.

The point when an adjustable-rate mortgage is reviewed under its formula and the new rate may change the payment.

A lock feature that can improve pricing if market rates move lower.

The ARM rate produced when the index and margin are combined.

The external benchmark many ARMs use to calculate future rate changes.

The opening ARM period when the interest rate does not reset.

Extra lock time added when the original rate-lock window is about to expire before the mortgage closes.

The amount of time a mortgage rate lock stays in effect.

The loan-specific amount added to the index on many ARMs.

A buydown that lowers the mortgage rate for the full loan term.

Caps on how much an ARM rate can rise at resets or over the loan's life.

A lender commitment to honor specific mortgage pricing for a defined period.

The interval between ARM rate resets after the initial fixed period.

A buydown that lowers the payment or effective rate for an initial period.

A borrowing-cost measure that combines the rate with certain finance charges.

The contractual interest rate written into the promissory note.

Interest collected at closing for the days before the normal payment cycle begins.

Mortgage cost terms covering rates, points, fees, locks, buydowns, and ARM pricing mechanics.

A pricing sheet showing rates, points, and adjustments for different loan scenarios.

A mortgage compensation term most often discussed in older pricing contexts.

An upfront pricing structure that lowers the borrower's rate or payment.

The percentage charged on the unpaid mortgage balance.

The rate priced without discount points or lender credits at that moment.

A fee some loans charge if the borrower pays off the debt early.

The minimum rate below which an ARM will not fall.

A temporary introductory rate designed to apply only for an initial period.

The one-time charge many VA borrowers pay to use the VA guarantee program.