2007-06-12 08:07:04 · 3 answers · asked by Sarah B 1 in Business & Finance ➔ Renting & Real Estate
When asked this question by lenders I always say I don't want to pay points! I have great credit, so I always get a favorable interest rate. I found that you can negotiate away the points. There are a lot of good lenders out there and they can be very competitive. Don't work with just one lender because you already are comfortable with them, shop around.
2007-06-12 08:24:59 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Points are what the mortgage company makes.
Generally the more points you pay, the lower you rate.
I would tell them I want to pay 1 point.
Call several lenders and tell them all you want to pay 1 point.
Compare interst rates based on 1 point.
I.E. 1 Point=1% of the LOAN amount.
Not the purchase price but what you're actually borrowing.
2007-06-12 17:34:31 · answer #2 · answered by Terry S 5 · 0⤊ 0⤋
You can reduce your interest rate by paying points up front at closing. A point is 1% of the loan amount, which means 1 point on a $100,000.00 loan amount would be $1,000.00.
2007-06-12 15:18:20 · answer #3 · answered by Sandy Mom of 2! 2 · 0⤊ 0⤋