Mortgage Glossary
Par Rate
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A par rate is the interest rate a borrower can get with no discount points paid and no lender credit received.
What Par Rate means
It's the baseline pricing from which paying points lowers the rate or taking a credit raises it. Knowing your par rate clarifies whether points or credits make sense.
Florida example
A Florida lender quotes a 6.75% par rate. The borrower can buy it down to 6.5% with a point or accept 7.0% with a credit toward closing costs, depending on their cash and time horizon.
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