We may charge you a fee for lending you money. The fee is usually a percentage of the loan and is sometimes referred to as “points.” One point is equal to one percent of the amount you borrow. For example, if you were to borrow $10,000 with a fee of eight points, you would pay …
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Paying Points for a Lower Rate
In refinancing, a mortgage company usually offers a range of interest rates at different amounts of points. A point equals one percent of the loan amount. For example, three points on a $100,000 mortgage loan would add $3,000 to the refinancing charges. Analyzing various interest rates and associated points may save you money. As a …
Qualifying for a Low Down Payment Loan
To be considered for a low down payment loan, you generally need to have: Sufficient income to support the monthly mortgage payment Enough cash to cover the down payment Sufficient cash to cover normal closing costs and related expenses (explained below) A good credit background that indicates your payment history or “willingness to pay” Sufficient appraisal value, which …
Should I Pay Points?
A point, which equals 1% of the total loan amount, is an upfront fee that reduces your monthly interest rate and total interest due over the life of a loan. This means that a one point loan will always have a lower interest rate than a no point loan. Paying points is in essence a …
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