AboutBobbi Buehl Expertise Home mortgages is my expertise
Experience Experience in the area 15 years Organizations Mortgage Brokerage Education/Credentials BS in Chemical Engineering, BA in Sales and Marketing. Licensed Loan Officer for 6 years and I have worked as a Loan Officer for 15 years.
Question can you please explain in laymans terms what the points are all about when you get a loan. Specifically a home loan.
For example if your loan is 6% and they add 2 pts that would make it 8%, right? So do you have to pay 8% for the life of the loan (provided its a fixed loan)
I don't understand what its all about.
Answer Joyce,
Fist of all, if you pay 6 or 8 points for any loan you are in what's called predatory lending. The law is no more than 5 points and that is too much also!
You should pay no more than 3 points for a loan and that number is based off a small loan amount. The typical points charged to secure a loan is 1-2 points if using an honest Lender!
Unless you are paying the point(s) up front, then yes you are paying the point(s) for the life of the loan.
