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Please note : Answer to some of these questions are on different pages. Bookmark this page so you can come back here. If you would have questions not answered here you may email them to Financing and Improvement Specialists (click here).
- What are points?
- What is an Annual Percentage Rate or APR?
- Why do interest rates change? Can I predict interest rates?
- Does it cost me more to use a mortgage broker?
- What is a conforming loan? What is that magic number that separates a conforming loan from a jumbo loan.
- What is a 203K loan?
- Are negatively amortized loans good, bad, or ugly?
- What is a FICO score? (coming soon)
What are points?
Points are loan fees paid to lenders. 1 point=1% of the loan amount. On a $100,000 loan 1 point is $1000. Points may be further classified into origination points or discount points. Origination points are charged by a mortgage company as a fee to process and approve your loan, while discount points are used to buy down the rate of interest. When a mortgage company states that a loan has 2 points be sure to ask them if the 2 points includes both discount and origination points.