Question & Answers
0 Votes
Points are an up-front fee you pay for obtaining a mortgage. Each point equals 1% of your loan amount. For example, a $300,000 mortgage with 1 points, means you have to pay $3,000. Some lenders add origination points into their quoted points while other lenders add an origination point in addition to their quoted points. You can get a no point mortgage if you are short of cash, but then the interest rate will be higher. Or you can pay more points to get a lower interest rate, which might make sense if you are planning on keeping your home for a long time.
Your origination fee (points), when buying a home or refinancing, are generally deductible on Schedule A form of your tax return. This is also the case with your mortgage interest.
Related Questions...
- How does owner financing work when using a note? Does the seller sell the note to get money up front? Is there a negative for the buyer if the note is sold?
- How does new Emergency Homeowner Loan Program (EHLP) work?
- Do you have any experience with NACA (Neighborhood Assistance Corporation of America) loan modification expos?
- Loan Scenario-- Can Anyone Do This: Loan State: Virginia - Loan Type: Refinance Rate & Term - Loan Amount: $100,000 - Property Value: $180,000 - LTV: 56% - FICO: 716 - DTI: 26 - Occupancy Type: Non- Owner Occupied - Property Type: Single Family Residence - 4 Investment properties and primary residence- customer wants to R&T all.
- Loan Scenario- Loan State: CA Loan County: Kern Loan Type: Refinance R&T, Loan Amnt: $206,000, Property Value:$175,000, LTV:118%, FICO:795 ,DTI:43, Occupancy Type: Owner- Occupied, Property Type: Manufactures D/W- Help - Need a lender not a broker, that will finance a manufactured home under the Refi Plus Program?
