Are Online Interest Rates Too Good to Be True?

Sometimes those eye-catching rates come with fine print that says “with one discount point” or “with two discount points.” That means you’d have to pay extra money at closing to get that lower rate.

A discount point is an upfront cost you pay to lower your interest rate. One point usually costs 1% of your loan amount. So, for a $300,000 loan, one point would be $3,000. That’s money out of your pocket at closing.

Online lenders use this strategy to advertise the lowest possible rate—but that rate often isn’t what most buyers end up with. It’s important to understand the total cost of the loan, not just the rate.

At Cream City Mortgage, we break it all down for you—no surprises. We’ll help you compare options and make the best choice for your situation.

Have questions? Reach out to us today!