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can someone explain points to me?
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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can someone explain points to me?
I have been looking around online at mortages and they all seem to give me different points. What determines this? How do you get negative points?
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Posted 8/10/06 11:51 AM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: can someone explain points to me?
I work for Countrywide home loans, if you want FM and I can give you my managers number and he can explain it in detail.
The best way to describe it is to use what we did when we bought our house. The interest rates at the time was 6.75% (I think). Which means obviously our monthly payment would be a little more. What we did was buy a % of a point (1 point is equal to 1% of the loan) and lowered our interest rate to 6.25%, which saved us a couple hundred dollars a month in our mortgage payment. Upfront it was about $2,000+ dollars, but the idea is that you lower your monthly payment, as well as the amount you owe over the life of the loan.
There is no neg. points. It is either no points or you are paying points to lower your interest rate.
Message edited 8/10/2006 2:57:13 PM.
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| Posted 8/10/06 2:56 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: can someone explain points to me?
Posted by jellybean1420
I work for Countrywide home loans, if you want FM and I can give you my managers number and he can explain it in detail.
The best way to describe it is to use what we did when we bought our house. The interest rates at the time was 6.75% (I think). Which means obviously our monthly payment would be a little more. What we did was buy a % of a point (1 point is equal to 1% of the loan) and lowered our interest rate to 6.25%, which saved us a couple hundred dollars a month in our mortgage payment. Upfront it was about $2,000+ dollars, but the idea is that you lower your monthly payment, as well as the amount you owe over the life of the loan.
There is no neg. points. It is either no points or you are paying points to lower your interest rate.
there is such a thing of negative points.
I found this:
Its points paid by a lender for a loan with a rate above the rate on a zero point loan. For example, a lender might quote the following prices: 8%/0 points, 7.5%/3 points, 8.75%/-2.5
points. Negative points, often referred to as 'rebates,' are used to reduce a borrower's settlement costs.
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| Posted 8/10/06 3:49 PM |
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