Home Buying in Sunrise Manor>Question Details

Theodore Stu…, Home Buyer in Las Vegas, NV

What are Points?

Asked by Theodore Stutz, Las Vegas, NV Mon Mar 19, 2012

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Points are pre-paid interest. Not the same as an origination fee, often confused even by Realtors and newbie loan officers. With current rates as low as they are today I rarely get asked about points to buy down the rate.
0 votes Thank Flag Link Mon Mar 19, 2012
Points are basically up front fees, also known as discount points. Instead of charging a higher interest rate they charge points as loan origination fees. One point is one percent of the amount borrowed. Let me know if there is anything else I can help you with.

Graham Irving
Province Real Estate
0 votes Thank Flag Link Mon Mar 19, 2012
In layman speak points are I believe a hard to figure out thing bankers dreamed up to get more monety out of us Kind of l8ike what the IRS does with all those crazy complicated tax changes. ha!
Flag Sat Jun 16, 2012
A point is 1% of your mortgage amount. Some say it is prepaid interest which should lower your interest rate however it is also how the loan officer get paid so compare between a couple of companies. A good local and trusted bank or mortgage company is always a great place to start,
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Mar 19, 2012
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