Just what are they? They are fees you (borrower) pay the lender at the time the loan is closed. It is 1% of the mortgage loan.
A loan of $100,000 with three points will cost a payment of $3,000. If you decide to buy points when you close on your mortgage it can reduce your interest rate on the loan. This will make your monthly mortgage payment will be lower.
You have to decide if you can afford to make the up front payment for points. If you plan to stay in your home for a while then it will make sense to pay for the points.
Points: (Credit to the Borrower)
(Investment to the Lender)
(Lower interest Rates)
Tags: credit, credit habits, Good Credit, home, lease purchase homes, mortgage, mortgage points, rent-to-own homes
