Home loan discount rate
In most cases, one point gets you .25 percent off the mortgage rate and costs the borrower 1 percent of the total mortgage amount. For example, if you buy a house and your mortgage is $200,000 FHA Loans- Annual Percentage Rate (APR) calculation assumes a $153,918 loan ($150,000 base amount plus $3,918 upfront mortgage insurance premium) with 3.5% borrower-equity, and borrower-paid finance charges of 0.862% of the base loan amount, plus origination fees if applicable.