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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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