Points on portfolio loans vary by lender. Some portfolio lenders offer discount points, some do not. Because portfolio loans are held by the lender rather than sold, pricing is set by the lender's own guidelines. Always ask your lender about point options.
Portfolio Loan Points
Portfolio loans are held by the lender rather than sold on the secondary market. Because the lender keeps the loan, they set their own pricing rules. Some portfolio lenders offer discount points similar to conventional loans. Others offer flat-rate pricing with no point option.
Lender Variations
Since portfolio lenders set their own guidelines, the availability and pricing of points varies widely. One lender might offer 0.25% rate reduction per point, while another might offer more or less. Always ask: do you offer discount points, and what is the rate reduction per point?
Alternatives
If points are not available on a portfolio loan, consider: making a larger down payment to reduce the LTV (which may earn a lower rate), a shorter loan term, or comparing with a different portfolio lender. Some borrowers also choose to refinance to a conventional loan after a few years to capture a lower rate.