Skip to main content

Why mortgage points matter

By Marcie Geffner - Credit Karma

Homebuyers tend to be laser-focused on getting the lowest possible interest rate for their mortgage. A low rate is desirable because the lower your interest rate, the lower your monthly payment. But a low rate isn't the only thing you need to consider when you choose a mortgage.
Mortgages typically involve a variety of fees. Some of those fees are known as "points" because they're based on a percentage, or point, of your loan amount. One point is equal to 1 percent of your home's mortgage amount. For example, a fee of one point for a $250,000 mortgage would cost $2,500, while a half-point would cost $1,250
Read on:
https://www.creditkarma.com/article/what-are-mortgage-points

Contact Form

Name

Email *

Message *

Blog authors

My photo
Reporter. Writer. Editor. Book reviewer. Part English major. Part MBA. Often at the beach. Always on a deadline.