In general, each discount point you buy lowers your interest rate one-eighth to one-quarter of a percent. The fee that you pay is just the broker fee, something that is paid for the service rendered to you, nothing else. Technically, a loan origination fee is the fee the lender charges for loan processing. The process was thorough and every step of the way was explained to us along with giving us updates when waiting for a given step to complete. I would definitely recommend sammamish Mortgage. Each loan application has started with Ryan Shane, one of the owners of the company. I bought a new house and sold our old house and they were fantastic making sure we closed in a very timely matter (we closed 26 days after they received my INITIAL application). Communication was excellent. Origination points are another type of mortgage point. However, you may have more negotiating room on the number of points they expect you to pay. I literally saved my family and I over $20,000 by going with Sammamish and on top of that had an amazing customer service experience. She was just so friendly, and patient, and knowledgeable! These fees are tax-deductible if they meet certain conditions outlined in the IRS Publication 530. Ryan and Nick were fantastic, the website is easy to use and their rates are the best in the business. As explained in IRS Publication 936, points are tax deductible but other loan origination fees are not.These other fees include preparation costs, notary fees, property taxes, appraisal fees and mortgage insurance premiums. We'll assume you're ok with this, but you can opt-out if you wish. Ryan and his team were very supportive throughout the entire application process! Would definitely go through them again! We've worked with them several times and each time is efficient and painless. Since discount points vary by lender, it’s important to examine the fine print before making any purchasing decisions. All in all a great experience. The experience was great. The opportunity to work with Nick and Katrina had been serene! It usually varies from 0.5% (half a point) to 2% (two points) of a given loan amount, depending on whether the loan was originated. Switching mortgage companies while in contact on a house is stressful and not easy, but could not have don't it without Ryan and his team. I've worked with banks, S & Ls, mortgage brokers and online lenders, (online lenders are the worst! I wholly appreciate the complete transparency in what has been one of the biggest financial decisions of my life. The origination fee vs. points comparison given below will try to explain these two terms. 6789 Quail Hill Pkwy, Suite 211 Irvine CA 92603. I contacted Sammamish Mortgage after reviewing their website and was referred to loan officer Sandra Harrison- Brown. Big thanks to Ryan S and Suzanne T who kept everything easy and smooth sailing since day 1. The more you pay in discount points, the lower your interest rate will ultimately be. My first contact was Trevor Shane and then Suzanne Thirtyacre. SM helped us purchase our first home and it was a seamless process! It is typically between 0.5% and 1% of the total loan amount. From start to finish, Nick, Bernice and Sandra were professional as well as exceptional to work with while getting my loan processed. Before you pay points or discounts, see to it that the interest rate is actually lowered. Understand why you pay points and how to avoid paying them and what impact they are suppose to have on your mortgage loan This determines if the property has termites or any other infestation. An origination fee is similar to any commission-based payment. Highly recommend them! We hope you enjoy this website. Couldn’t have been better. We had worked with a lender that referred us and we were not happy with their service. Several factors may play a role in the amount of origination points you’ll have to pay. The people at Sammamish Mortgage I worked with were great and made the process of refinancing simple and stress-free. For practical purposes, however, the IRS views both origination fees and points as prepaid interest. Thank you, Ryan and team! I greatly appreciated that. Steve and Stacey helped me through the way, and it was a pretty smooth experience! The online portal Sammamish Mortgage uses was also a great way to organize/streamline all the document uploads we needed to make.Ryan, Sandra & Suzanne were a pleasure to work with! Ryan and his team worked hard to make our refinance happen. Origination charges and points are two terms that often confuse people. 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