Hello. First & foremost, congratulations on your decision to buy a home. It is an excellent time to do so. To answer your question, points are a one time charge that are paid at the closing table by the borrower. One percent is equal to 1% of the loan amount. This fee should have been no surprise because they should have quoted it to you when you got pre-approved.
You do not have to purchase points. The Lender charges points, which you will have to pay at the closing table. Again, it is a one time fee, and is dependent on the lender. Not every lender and/or loan comes with points. Consider consulting with a Mortgage Advisor for more information.
I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.
Wishing you the best of luck,
De Vonte Williamson
Licensed Real Estate Salesperson
Proudly Serving Long Island
Coldwell Banker Residential
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