When you are shopping for a mortgage you will hear the term points and learn that they are an expense that you have to pay up-front, at closing to kick off your home loan. So the question is: Why pay on a mortgage? This is an up-front fee that is common practice but it can be […]
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Mortgage points, also referred to as ‘discount points,’ are payable at closing. Each point is charged at 1% of your mortgage loan and reduces your interest rate by a certain amount. The amount by which the rate is reduced for each point varies according to your mortgage and your lender, though an average is 0.25% […]
Mortgage points offer a means of reducing your mortgage interest rate by purchasing points upfront. Each point helps your mortgage interest rate and one point is charged at 1% of the amount of your mortgage loan. Thus, if your mortgage loan is $150,000, each point will cost you $1,500. Generally, mortgage lenders will offer you […]
What mortgage can I afford? Practically all house buyers have asked themselves that question at one time or another. What are mortgage points, and what down payment must I have? These are others. Here is some advice on arranging a mortgage that you can afford. What Mortgage Can I Afford – Pretax Income It is […]