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Refinance Mortgage with Points
Points, or loan-origination fees, will also impact your interest rate. A point is one percentage point of your loan amount. Lenders offer the opportunity to purchase points up front to lower your interest rate, which is simply a matter of trading out of pocket expenses in exchange for a higher loan amount/interest rate.
In some cases, points are tax deductible. If you don’t intend on staying in your home for too long, it makes more sense to pay less up front costs, and take on a slightly higher rate.
Hipotecas Prestamos September 5, 2006 09:31 AM