|
|
Please note : Answer to some of these questions are on
different pages. Bookmark this page so you can
come back here.
What are points?
Points are loan fees paid to lenders. 1 point=1% of the
loan amount. On a $100,000 loan 1 point is $1000. Points may be further
classified into origination points or discount points. Origination points are
charged by a mortgage company as a fee to process and approve your loan, while
discount points are used to buy down the rate of interest. When a mortgage
company states that a loan has 2 points be sure to ask them in the 2 points
includes both discount and origination points.
|
 |
