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Point in a Mortgage
If for a $100,000 loan, the [percentage] points are 1.5, then one pays $1,500 in points because . We have ignored other factors in a loan in order to focus on the idea of a point herein.
A point is one of the important factors in the calculation of the annual percentage rate for a mortgage.
Sometimes points are referred to as origination fees. An origination fee of 2% on a $200,000 loan is $4,000. In aome cases, one has to pay points plus origination fees.
Some lenders refer to points as discount points.
Also see:
Finance
Personal finance
Debt consolidation
Bank
Building society
Interest-only loan
• Debt
• Credit Report
• Unclaimed
Money
• Structured
Settlement
• Creditworthiness
• What is a Loan
• Annual Percentage Rate
• Origination Fee
• Point in a Mortgage
• Bankruptcy
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