Mortgage Glossary
Bona Fide Discount Points
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
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.
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