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S00N2BEAMOM
LIF Toddler
Member since 12/07 390 total posts
Name:
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Mortgage points
How do they work? If you were quoted a 4.87 on a 30 year fixed mortgage for $300k but had to pay a point. What would that work out to be? I have no clue about these things at all. TIA!
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Posted 3/17/09 1:29 PM  |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: Mortgage points
One point equals one percent of the loan amount. Are you buying a point to get 4.87?
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| Posted 3/17/09 1:38 PM |
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LAMGAJ28
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Member since 10/05 6039 total posts
Name:
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Re: Mortgage points
That's a great rate.
1 point is equal 1 percent of the mortgage amount. In your case if it's $300,000 and you are paying 1 point, you will have to pay $3000.
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| Posted 3/17/09 1:40 PM |
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S00N2BEAMOM
LIF Toddler
Member since 12/07 390 total posts
Name:
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Re: Mortgage points
That was what a friend was quoted but we we were offered the same rate w/o the point with a lock in fee of about $1600 that would go toward the closing and the option to pay 4800 up front to avoid PMI. Just trying to figure out the different options out there.
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| Posted 3/17/09 1:44 PM |
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LAMGAJ28
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Member since 10/05 6039 total posts
Name:
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Re: Mortgage points
Posted by S00N2BEAMOM
That was what a friend was quoted but we we were offered the same rate w/o the point with a lock in fee of about $1600 that would go toward the closing and the option to pay 4800 up front to avoid PMI. Just trying to figure out the different options out there.
Usually to avoid PMI, you have to put down 20% down of the amount. $1600 sounds like maybe they quoted you half a point instead of one to lock in the rate.
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| Posted 3/17/09 1:46 PM |
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S00N2BEAMOM
LIF Toddler
Member since 12/07 390 total posts
Name:
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Re: Mortgage points
Posted by MrsFresca
Posted by S00N2BEAMOM
That was what a friend was quoted but we we were offered the same rate w/o the point with a lock in fee of about $1600 that would go toward the closing and the option to pay 4800 up front to avoid PMI. Just trying to figure out the different options out there.
Usually to avoid PMI, you have to put down 20% down of the amount. $1600 sounds like maybe they quoted you half a point instead of one to lock in the rate.
We would be putting down %15 and it was explained by our mortgage consultant that we could pay a one time fee up front to avoid PMI on top of Mortgage & closing fees. I don't think the $1600 would be a 1/2 point only because they will be deducting that from out closing costs.
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| Posted 3/17/09 1:57 PM |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: Mortgage points
We are with TFCU, and they have 4.75% for a 30-year today.
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| Posted 3/17/09 2:24 PM |
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