I often get this question from my first-time home buyers... what is "POINTS." Points are referring to the amount of interest charges that you will pay upfront when you get a loan. "Points" are also known as a "Loan's Origination Fee" and it is a percentage of the total loan amount. 1 Point is equal to 1% of the total loan amount. For example if the lender has a one point costs on a $100,000.00 loan then the total upfront payment will be $1,000.00 Typically the more points a loan has the lower the interest rate should be. REALTOR (R) Tom Davis has more home buying tips to help you when your looking to buy a home. You may wish to request a "FREE REPORT" and also review a list of Delaware homes for sale at: www.FreeHomeSearch.DreamStation.com I hope this helps explain what points are and if you have any questions I would be more than delighted to answer any question you have!
Thank-you,
Tom Davis
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