What are points?
Points are costs that need to be paid to a lender in order to receive mortgage financing under specified terms. One point is equal to one percent of the loan amount. In other words, one point on a $100,000 loan would be $1,000. Discount points are fees that are used to lower the interest rate on a mortgage loan. Some people may choose to pay one or more points to the lender up front in exchange for a lower interest rate. The choice is personal and dependent upon one's financial situation, how long one plans to be in the home, etc.
See related Item: http://
Go
back
|