Introduction to Mortgage Origination Examinations Training

3/7/2025

Internal Use Only

Par Pricing – What is par? At par = loan priced at 100.00 or 0 on rate sheet Below par = loan priced at 99.99 or below, or a negative number on rate sheet Above par = loan priced at 100.01 or above, or a positive number on rate sheet

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Internal Use Only

Discount Points – What are discount points?

Discount points (points) are a percentage of loan amount the lender or borrower pays for a lower rate. **One point = 1% of loan amount

Example: On a $125,000 loan amount, 1 discount point would cost $1,250.00. 2 discount points = $2,500.00.

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