Discount Points vs Origination Points

Описание: Confused about mortgage points on the real estate exam? You are not alone. This is one of those topics that sounds complicated until someone explains it in plain English.
In this video, we break down exactly what a point is and how to calculate it.
✔ One point = 1% of the loan amount
✔ It is NOT 1% of the sales price
✔ Points are fees charged by the lender

Easy way to remember it:
Think:
👉 Loan amounts have interest rates
👉 Interest rates are percentages
👉 A point is a “percent of a percent”
👉 So points are based on the loan amount

There are two main types of points:
✔ Origination Point
A fee charged by the lender for making the loan
✔ Discount Point
A fee paid upfront to lower the borrower’s interest rate

Example:
If the loan amount is $150,000:
1 point = 1% of $150,000 = $1,500
If the loan amount is $350,000:
1 point = $3,500
Understanding points can help you answer questions related to:
• Mortgage math
• Loan costs
• Financing
• Closing costs

🎓 Need more help passing the real estate exam?
Our Real Estate Exam Study Pack includes:
• Digital flashcards
• Audio lessons
• Video breakdowns
• Practice exam questions
📚 Grab it here:
https://jbrea.net/studypackage

💬 Studying right now?
Drop your toughest real estate exam questions in the comments — we may cover them in a future video.
Remember: You only have to pass the exam one time. You’ve got this.