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Buying or Selling a Home/mortgage points
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Question
Hi my name is Rochelle.What are mortgage points? How are they used? I live in Illinois and on my tax form I see points paid on purchase of princile interest,200.00. I believe that I paid 500.00 extra to reduse my intrest from 6.5 to 6.0. But I still did understand how it was done and the principle behind it.Can you help me? Thank you.
Dear Rochelle;
I think that the lender can best answer this question but I can tel you that points are like the payment portion of the loan that gets you the rate you want. The higher the points, the lower the loan interest rate. What you are doing is paying for the money up front. Borrowing money costs money and you can either pay for it over the life of the loan or split it up and pay a little up front and the rest in the interest payment.
~Jessica Bryan
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Answers by Expert:
- Dick Dennis
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- Sue Bernstein
- Karyn Foley
- Dottie Worthington
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- Connie Wildasinn-Broker,GRI,RealtorŪ
- Todd C. Menard
- Diann Tonnesen
- John Hendricks
- Jay Denit
- Matt Heisler
- Lisa Webber
- John
- Laurie Stephenson
- Marvin G. Bobbitt, III
- Nori J. Muster
- Sharon Huneycutt, Realtor, Associate Broker, GRI, e-PRO
- CJ Brasiel
- Jeff Kessler
- Kathryn Hisert
- Emily
- Ted Lewis
- Kerrin Kostelic, FL Broker Associate, GRI, AHWD
- Tim Norris
Jessica Bryan
Expertise
buying and selling process such as:
General questions from first time buyers
How to market a home
Why choose a REALTOR
How do I find a REALTOR
Should I consider buying or selling without a REALTOR--how much can I save
Should I remodel or move
How much can I expect to gain by fixing up my home before selling
Helpful tips when selling
Helpful tips when buying
finding a good mortgage loan
what is the difference between banks, mortgage bankers, and mortgage brokers
Questions from the general public, people thinking about getting their real estate license, newly licensed.
Fellow professionals who have interests in networking and how to get started
What is a market evaluation and how does it differ from an appraisal what are the different loan programs
services a REALTOR can perform
when to use a lawyer
when to use escrow
what are the regional differences in the buying and selling process
what is the MLS and how does it work
how can the layman access information on the web--listings and other information
These are just a few of the questions. I can suggest that if I am unable to answer a question I will refer the inquiry to a source that can.
Experience
Anyone who is in this business and who dedicates oneself to professionalism has continued to take classes and along with it,additional credentials, awards and honors. I can list a host of them, but my greatest accomplishments happen to be those of getting first time buyers (who didn't think they could afford to buy a home)into a home of their dreams. The look on their faces when I hand over the keys is worth all of the hard work.
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