What Are Points, Anyway? Take the quiz!
A quick quiz: mortgage “points” are???
a) certain charges paid to obtain a home mortgage
b) the gross profit for the originator of the loan
c) up-front mortgage interest fees to reduce the interest rate
d) each equal to 1 percent of the total loan amount
e) loan origination fees
f) charged by a lender to raise the yield on a loan when money is tight, interest rates are high, or there is a legal limit on the interest rate that can be charged on a mortgage
g) come in two varieties
h) all of the above
If you can buy some points its helpful, but not everybody can afford the extra several hundred to several thousand dollars to do so. If you can't it's okay too! Talk to me and your mortgage loan officer about points:)