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As we move further into February, market uncertainty remains top of mind both politically and economically. Borrowers are increasingly relying on experienced mortgage brokers to help guide their financing decisions. One of the most common questions Orion brokers hear is whether a borrower should pay points for a lower interest rate or choose a higher rate with a lender credit.

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This is where mortgage brokers add real value. Rather than offering a single option, brokers analyze each borrower’s scenario individually, a level of service that is rarely provided by internet lenders.

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Understanding Rate Options and Pricing

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For most borrower scenarios, there are multiple interest rate options available. On a fixed rate loan, there can often be 20 or more rate and pricing combinations. These range from lower interest rates that require the borrower to pay points upfront to higher rates that include lender credits. On a 30 year fixed rate loan, the difference between the lowest and highest available rates can be 2 to 4 points depending on the scenario.

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Presenting every option is not always effective, so brokers typically narrow the choices to four or five alternatives. These usually include one or two options with points, a no point option, and one or two options with lender credits. Brokers often provide borrowers with a comparison spreadsheet showing interest rates, monthly payments, and the associated points or credits for each option.

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Evaluating Borrower Needs and Long Term Value

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As we move through 2026, more borrowers who closed loans in 2020 and 2021 are refinancing, even after securing historically low rates. Brokers help determine whether a lender credit is needed to close or whether a borrower can qualify comfortably with a higher rate.

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For borrowers who do not need rebate funds, the conversation shifts to long term value. Two key factors matter most how long the borrower plans to keep the property and which rate provides the best overall financial outcome.

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How Brokers Add Value Through Analysis

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Brokers analyze the cost of changing an interest rate by one eighth of a percent and compare that cost to the monthly payment savings. This allows borrowers to understand the payback period in months by dividing the cost difference by the monthly savings.

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Lowering the interest rate generally becomes more expensive with each adjustment, while increasing the rate to generate a lender credit often results in diminishing returns. Understanding these nuances helps borrowers make informed decisions that align with their financial goals.

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Ultimately, Orion brokers know that pricing strategy depends on each borrower’s timeline, cash needs, and long term plans. Whether the lowest rate makes sense or a lender credit is needed to close, these conversations are exactly where brokers deliver value.

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