Abby's Guide to Home Mortgage Loan
Username Password
Home Reviews More Guides
Abby’s Guide > Home Mortgage Loan > Guide > Home Loan - And what is this thing called a point?

And what is this thing called a point?

A point is a prepaid fee your lender will charge you for the pleasure of spending his money and is assessed at 1% of the amount of your loan. If you are paying two points on a $200,000 loan, your cost is $4,000 in points.

To assure you are not paying more than you should, it takes about 5 years to catch up with the points paid up front before you begin saving money from the lowered interest rate.

Home Mortgage Loan Guide   •   Reviews  
AbbysGuide.com   About Us   Terms of Use   Privacy Policy   Contact Us
Copyright 1998-2024 AbbysGuide.com. All rights reserved.
Site by Take 42