What do discount points, rebate credits, and mortgage insurance estimates mean?

When reviewing mortgage rates online, you may see several options that affect your rate and closing costs.

Here are a few helpful definitions:

• Discount points let you lower your interest rate by paying more at closing.
• If the Discount Points column shows 0.25, that means you would pay an additional 0.25% of the loan amount at closing to receive that rate.
• A rebate credit means you may choose a rate that provides a lender credit at closing.
• If there is a number listed in the Rebate column, you may select that rate and receive that amount as a credit at closing.
• Clicking the payment amount in the Total Payment column will show a breakdown of the monthly payment, including estimated mortgage insurance, if applicable.

Please note that mortgage insurance estimates shown on the website may be higher than your final amount, since they do not reflect your full financial profile. Once your application is submitted and reviewed, LutheranFCU will provide your actual mortgage insurance amount, if required.

Members in certain states may also see non-conforming RCW mortgage loan programs. These are available only to Rostered Church Workers in active or emeritus status on the LCMS roster, including pastors, teachers, DCEs, and deaconesses. RCW loans allow up to 95% loan-to-value financing, with as little as 5% down plus closing costs, and do not require private mortgage insurance.