Understanding Points
Often home buyers who are obtaining a mortgage for a newly purchased home, will ask their GreatWest GMAC Real Estate Professional, “What are points?”
The answer - Each point or discount point, as real estate professionals and mortgage lenders often refer to them, are equal to 1% of the loan amount. For example, on a $100,000 loan, one discount point equals $1,000. And ½ discount point for the same loan would be $500.
Points are paid to a lender at closing in order to lower the mortgage interest rate. Although “discount points” are a part of your closing costs, they are no...
Read more
Read more | 0 comments
|
Link directly to this article.
