If money is tight, we can pay points for you, also called "pricing credits.

" You can use pricing credits to cover some of your closing costs.

The explanation below assumes a $180,000, 30-year fixed loan. This example, from the Consumer Financial Protection Bureau (www.consum

COMPARE THREE SCENARIOS OF HOW POINTS AFFECT INTEREST RATES

INTEREST RATE 4.875% 5.0% 5.125%

POINTS +0.375 0 -0.375

YOUR You plan to keep your mortgage You are satisfied with the You don't want to pay a lot
for a long time. You can afford market rate without points cash upfront, and
of you can afford
SITUATION a to pay more cash at closing in either direction larger monthly mortgage payment

YOU MAY Pay points now and get a lower Pay a higher interest rate and
CHOOSE interest rate. This may save you Zero points. get a lender credit toward some
or
money over the long run all of your closing costs

You agree to an increase in closing You agree to a higher interest rate

costs, in exchange for a lower
interest rate
WHAT THAT
MEANS Now: You'll pay more at closing
Over the life of the loan:
Without adjustments it might be
easier to compare prices
in exchange for reduced out-of-
pocket closing costs.
Now: You'll pay less out of pocket
at closing.

n
You'll have lower Over the life of the loan: You'll
monthly payments have higher monthly payments

LOCK YOUR RATE!

D
Once you've selected a home and you're pre-approved, we'll lock your interest rate for up to 60 days.
There's no fee to lock your loan! If you choose not to lock your rate, it will "float" up or down as
interest rates change.

PG 16 www.planethomelending.com/Frank-Rivera