Email Preview: |
Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.
What Exactly are Mortgage Points, Rates, and Fees?
Someone asked me about the basics of a loan... in a nutshell there are several costs that are associated when obtaining a mortgage. Those common 3 widely used words are points, rates, and fees I'm going to have to put the types of mortgages aside for this one but leave it simple and just address the 3 kings that are commonly associated with a mortgage. Just remember to ask questions and these costs will be paid upon closing. Purchase Points Points, purchase points, buy down, or discount points are the common front fee that is paid to the lender buy down your interest rate so it it lower. Each point is about 1% of your total loan amount and the more points you buy the lower your interest rate but there is a limit. So you're asking yourself, spouse, or every person you trust, how do you decide whether you need to buy points? It's simple just figure how long you plan to live in your home and the longer you live in your home the more you can save on interest over the life of the loan. I usually average that you should live a minimum of 5-7 years at the place to really break and ... more
__________________________________________________ Are you on The Rain? Grow Your Network!
|