1. Losing Money With Lower Interest Rates. Some loans have very attractive interest rates (also known as teaser rates) but you may be hit with higher upfront charges. Points and/or origination fees are the most common ways to lower the rate and charge up front costs. When searching for a mortgage, ask the lender if they are charging points or origination fees. Points and origination fees are calculated as a percentage of the loan amount. See example below. Beware of Adjustable Rate Mortgages (ARM's) and Balloon Mortgages. ARM rates (0 comments)