Posted by Judy on May 15, 2005 at 23:41:02:
I would like to know how points work. If I want to pay down a loan amount. How much money does a point cost.
How do you pay Mortage Loan Points? - Posted by Anna
Posted by Anna on December 18, 2004 at 08:49:18:
When you get quotes for a mortgage, and they tell you that the cost of the loan will be 2 points (2% of loan amount), do you have to bring this amount to the closing, or is it rolled into the loan?
Re: How do you pay Mortage Loan Points? - Posted by Kristine-CA
Posted by Kristine-CA on December 18, 2004 at 21:47:06:
Anna: it can go either way. I recently asked a lender not to roll the points into the loan. He prefers including the points in the loan debt because it is a high interest loan–the more he can lend (up to his LTV criteria) the better for him.
I have to say, though, that I don’t use lenders very often and I have been surprised at how differently the various fees and points have been allocated. I always thought I was an educated person until I started reading loan docs.
By the way, what kind of loan is it and what kind of property for the 2 points? Kristine
Re: How do you pay Mortage Loan Points? - Posted by Dave T
Posted by Dave T on December 18, 2004 at 09:48:50:
Unless you specifically ask to have your loan costs added to your loan amount, you will need to pay for them out of pocket at the settlement table. Not all lenders will give you the option of including your loan costs in your loan amount.