What Are Loan Points?
Points are a one-time, up-front fee charged by the lender to originate the loan. 1 point equals 1 percent of the loan amount.
If you need a loan of $300,000; one point will be $3,000.
Typically you can obtain a lower interest over the life of the loan by paying higher points up front; or you can obtain lower points up front by paying a higher interest rate over the life of the loan.
You will want to carefully consider which approach best suits your personal financial goals.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net.
August 28, 2009 | Filed Under Especially for First Time Buyers | Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net
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