Bona Fide Discount Points
Bona fide discount points are legitimate points that buy down the rate by a reasonable amount and are excluded from certain QM fee caps.
What Bona Fide Discount Points means
To count as bona fide, the points must actually lower the rate by an accepted threshold. This distinction matters for keeping a loan within Qualified Mortgage limits.
Florida example
A Florida borrower paying one bona fide discount point that genuinely reduces the rate doesn't have those points counted against the QM points-and-fees cap, preserving the loan's QM status.
What they are
Bona fide discount points are points you pay that truly lower your interest rate. They must give a real rate reduction to count.
The term separates genuine buydowns from junk fees.
Why it matters
Real discount points can save money over a long hold. Knowing they are bona fide means you get real value.
We show you the break-even on any points. Apply now and we will make sure they pay off.
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Verify the details for your own situation against these government and agency sources: Freddie Mac Primary Mortgage Market Survey and Federal Reserve H.15 selected rates.