What is discount points - Using Points To Cut Your Interest Rate



Home \| Ask Your Question \| Mortgage Glossary \|Free Credit Report \| Mortgage Calculator

Mortgage Professor about discount points:

Are Discount Mortgage Brokers Upfront?
February 7, 2005 "In my market search I have come across Discount Brokers, who seem to uphold many of the same ethical standards as Upfront Mortgage Brokers (UMBs), but do not charge any fees for their service - they claim they are compensated by the lenders. Isn?t that even better ... more...

Settlement Costs Included in Annual Percentage Rate
July 11, 2002, Revised December 4, 2004 In principle, the APR should include all settlement costs that would not arise in an all-cash transaction. Unfortunately, the current definition violates this rule in a number of instances, with no rhyme or reason. The columns below ... more...

discount points related definitions

discount Point
Discount Point 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. In laymen terms, a point is a fee you pay to a lender or broker. Each point is one percent of ... more...

Closing
Closing The meeting between the buyer, seller and lender or their agents where the property and funds legally change hands. Also called settlement. Closing costs usually include an origination fee, ... more...

More about discount points

Get Free discount points Quotes and Estimates
Get instant on-line mortgage rate quote and closing cost estimate. Only put your loan numbers. No contact info required. Compare offers from top mortgage lenders... more...

Using Points To Cut Your Interest Rate
The general mantra in the real estate world is you want to avoid paying points when obtaining a mortgage. As with most assumptions, this is not always true.Using Points To Cut Your Interest RateWhen discussing mortgages, it is important to understand what points are. Points are essentially an ... more...

The Value of Foreclosed Property
The discount on a foreclosed property is not as great if the state allows deficiency judgments by lenders against borrowers. In contrast, the discount is larger if the property is being sold in a state that requires foreclosures to proceed through the judicial system. Lastly, appraisals seem to be ... more...

What Makes a Credit Score Rise or Fall?
OUR financial decisions can affect your credit score in surprising ways. Two credit-scoring simulators can help consumers understand the potential impact.The Fair Isaac Corporation, which puts out the industry-standard FICO scores, offers the myFICO simulator. A consumer with a score of 707 ... more...

Deducting Points On Home Refinances
Deduction of Refinance PointsAny points that you pay in the refinancing of your residence are tax deductible over the length of the loan in question. The deduction is allowable only if the residence is your primary home and the new mortgage replaces a previous one and/or is used to improve the ... more...

A Critical Guide to Home Loans: Your Options and How They Affect Your Future
Understanding Mortgage Loans-An Insiders GuideThere was a time in the not-so-distant past when financing the purchase of a home was relatively uncomplicated. You went to your local savings and loan and signed up for a 30-year, fixed-rate mortgage loan. Those days are gone, probably forever. Today, ... more...

Refinancing Mortgage Loan Costs - Are They Tax Deductible?
Not only are your mortgage interest payments tax deductible, but so are your refinancing costs. Points can be deducted over the life of your loan. However, there are some restrictions with this program.Deducting Refinanced PointsWhen you originally take out a mortgage, you can deduct the points ... more...

Fantasy Football Format -- Go Basic or Go Home
My fantasy football league is approaching its 16th season. We have had 16 teams competing before, but now we are a 14-team league. Although the subject of performance points is bandied about at our league meetings virtually every year, we remain a basic scoring league -- the only way to go for ... more...

Your Mortgage Rate Compare and Save
When trying to obtain the best mortgage rate compare offers from several lenders or brokers. Know how much of a down payment you can afford, and find out all the costs involved in the loan. Knowing just the amount of the monthly payment or the interest rate is not enough. Besides your mortgage rate ... more...

Some of the Available Loan Types
There are many mortgage products available on the market today. We can help you find out which one is right for you. Here are the most common options.Fixed Rate Mortgages (FRMs)* Interest rates stay constant for the life of the loan.* Offered in 10, 15, 20, or 30 year terms.* Payments are made up ... more...

Credit Cards: Making Your Dreams Come True
People have always had to choose the right credit card for them. But in the past, this choice dealt mainly with interest rates, grace periods, and credit limits. All of this is still true, however, there is one more aspect you will want to consider - customer loyalty plans!What Is a Customer ... more...

Return to previous page