I’m helping my Dad compare rates among loans for a property he recently signed on. In the purchase agreement, it states “buyer shall pay discount points not to exceed 0% of the loan amount.” Since my Dad’s English is limited, I’ve been looking online for as attractive of an offer as he can get currently. I found some good rates, but many of them include paying the discount points in exchange for a lower rate. Does this mean we cannot select any offers with discount points? It doesn’t make sense because the seller wouldn’t pay any closing costs anyway, right?
I practically have no experience with home buying/selling so any help is appreciated
I would imagine this was put in by your agents. It means that to meet the max interest of your loan contingency, you won’t be expected to pay discount points.
Do you have a real estate attorney? If not, at least discus with your realtor.
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