When you get a mortgage, closing costs will be a significant cost that you need to consider. One type of closing cost that you may have to pay is mortgage points. Mortgage points are a type of pre-paid interest that can be included as part of the upfront money that you have to pay a mortgage lender in fees.
Mortgage Points 101
The basic idea behind mortgage points is that the lender is essentially getting some of its interest on the front end of the deal. The value of one point is one percent of the value of the loan. For example, if you were taking on a $200,000 mortgage, one point would be equal $2,000. Continue Reading >>