Payment made to a lender at the time a loan is made, measured as a percentage of the loan, with each point equal to 1 percent of the principal amount, as an additional inducement for the lender to make the loan.
A charge by the lender for originating a loan, which is expressed as a percentage of the loan amount (i.e., percentage point). For example, two points of a $100,000 loan is $2,000.
A borrower's cash payment as part of the loan, agreed to by the lender and the borrower. 1 point equals 1% of the total loan amount. Most loans will have some type of rate/point combination.
Loan fees charged by the lender in addition to the contract interest rate and typically paid in advance or financed into the loan amount. A point is typically one percent of the loan amount.
A percentage of the loan amount that a lender charges a borrower for making a loan; also called loan fee.[ Back to Form
Points are additional mortage company charges for making a loan. A point is equal to 1% of the loan amount. By paying a larger number of "points" a borrower can obtain a lower interest rate. dtPortfolio Loan A portfolio loan is a loan kept in-house by the lender and not sold in the secondary market. These are usually loans in which the buyer, oftern due to poorer credit, does not meet Fannie Mae guidelines. Portfolio loans are usually at higher interest rates than ordinary conventional loans.
An up-front fee paid to the lender to get a lower interest rate on your loan. Each point equals one percent of your loan amount. May also be called a loan origination fee.
A unit of measuring for printing. There are 12 points to the pica & 6 picas to the inch for a total of 72 points to the inch.
A dollar amount, expressed as a percentage of the loan amount, that is paid to a lender. Points can reduce the interest rate on a loan and sometimes cover costs of the original loan.
Points are prepaid interest paid to the lender at closing. Each "point" is equal to 1% of the loan amount. For a $100,000 loan, one point equals $1,000. You can lower the interest rate by paying more points. In most cases, you'll want to live in the house for several years to recoup the cost of points in interest savings. If you're low on cash, then go for fewer or no points on your loan. See APR.
Points are charged by the lender at closing, and are a one – time cost of obtaining the mortgage funds. One point is equal to 1 percent of the amount of a mortgage loan. Points are sometimes paid at closing as a way to lower the monthly payment interest rate. The number of points and who pays the points are negotiable terms of a property sale.
A one-time charge for obtaining a mortgage or other loan.
normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount points are paid to reduce the interest rate on a loan.
A one-time charge paid by the borrower or seller and used by the lender to reduce the interest rate for the mortgage loan. One Discount Point (or "Point") is equal to 1 percent (1%) - on a $100,000 loan, 1 Point would equal $1,000.
What a lender charges to provide a loan: 1 point = 1 percent of the loan value. Points are also known as loan origination fees.
A fee expressed as a percentage of the loan amount. One point equals one percent. Points are usually collected at closing . Payment of discount points usually results in a lower interest rate on the loan.
A fee paid to improve the interest rate. 1 point is 1% of the loan amount. The interest rate can be decreased by, “buying the rate downâ€, and paying points. Also know as Discount Points.
Fees charged by lenders. One point equals one percent of the mortgage amount.
Loans fee paid by the borrower. One point is 1% of the loan amount.
A one-time charge paid to the lender for issuing a loan. Each point equals one percent of the loan amount and is used to obtain revenue in addition to the interest rate.
Points are sometimes paid at closing as a way to lower the monthly payment interest rate. Paying mortgage points may be a wise option if you plan on living in the home for more than a few years. One point is equal to 1 percent of the loan amount (for example, two points on a $100,000 mortgage equals $2,000). Also known as Discount Points.
One percent of the amount of the mortgage. Also called discount points.
Fee charged by lender to lower the interest rate. Each point is equal to 1% of the loan amount (e.g., two points on a $70,000 mortgage would cost $1,400).
A one-time setup fee charged by the lender. One point is equal to one percentage point.
One point equals one percent of a loan amount. For example, if a loan is made for $500,000, one point equals $5000.
A one-time charge by the lender to increase or decrease the stated interest rate on a loan. to decrease the interest rate, the borrower "pays" points, to increase the interest rate, the borrower "receives" points. All interest rate/point combinations are virtual financial equivalents.
A type of fee that lenders may charge at closing. Each point equals 1 percent of the loan amount. The more points you pay, the lower your interest rate will be.
Paid by the Buyer or Seller. One point is equal to one percent of the loan amount.
A one-time charge by the lender to the borrower for obtaining a certain interest rate; one point equals 1% of the amount of the mortgage.
1 point stands for 1% of the loan amount. Sometimes lenders charge borrowers 'points' to cover origination costs or to reduce the interest rate on the mortgage.
Points are finance charges paid at closing. Each point equals 1% of the loan amount. Some lenders charge a flat fee, rather than points.
Prepaid interest to lower the loan's interest rate. Can also be financed as part of the loan principal. Each point is equal to 1% of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000).
An interest fee charged by the lender. One point is equal to one percent of the mortgage. The use of points allows the lender to raise its yield above the apparent interest rate.
Points are additional fee paid to a lender. Points are generally stated as a percent of the total amount borrowed and are in essence prepaid interest. Points paid can be deducted over the life of the loan.
Points (sometimes called Discount Points or Origination Points) are one-time, up-front fees paid by the borrower. Each point equals one percent of your total loan amount. For example, on a $100,000 loan, 1 point equals $1,000.
The amount paid to a lender to enhance his yield and reduce the interest rate. Typically a percentage of the loan amount.
An up front charge paid by the borrower to the bank to cover the costs of processing and approving a request for a home mortgage. It is usually expressed as a percentage of the total loan.
Fees charged by the broker and/or the lender in the form of percentages of the loan amount. These points, often referred to as origination points and/or discount points together range from 1% to as much as 5%. On a $150,000 loan 3 points would equal $4,500 ($150,000 x 3%). These points are charged in addition to all settlement costs (see non-recurring fees and recurring closing costs ).
Points are paid to the lender to permanently buy down or lower an interest rate and are paid at closing. Each point is equal to 1% of the loan amount - that is, two points on a $100,000 mortgage would be $2,000.
One point equals 1 percent of the mortgage amount. Points are charged by lenders to increase the lender's return on the mortgage. Typically, lenders may charge anywhere from zero to two points. Loan points are tax-deductible.
Interest charges that are paid by the borrower when the loan closes. One point is equal to one percent of the loan amount.
Points are charges the borrower pays to the lender; each point is equal to 1% of the mortgage amount. Points are charged to increase the yield on the mortgage. Therefore, a mortgage with no points may have a higher annual percentage rate than a similar mortgage at a lower mortgage rate and a specified number of points. Some lenders will allow the borrower to amortize the points over the life of the loan.
A one-time-only fee paid to the lender, sometimes in exchange for a slightly lower mortgage rate. One point equals one percent of the total amount borrowed.
These are also referred to as Discount Points and equal 1% of the amount of the mortgage loan.
A unit of measure for charges that amounts to 1 percent of a loan. One point is 1 percent of the subject loan.
Fees paid to lenders. 1 point equals 1% of the loan amount; on a $100,000 loan, 1 point equals $1000. Points are differentiated as “origination points†(transaction fees) and “discount points†(interest rate buy-down).
(also called "discount points"): Finance charges paid to the lender as part of your closing costs. Each point equals one percent of your total mortgage loan. Points can be negotiable and are sometimes tied to your mortgage rate. Paying more points to get a lower interest rate may be a good idea if you plan to take a long-term loan.
A percentage of the loan amount, paid at closing to discount the interest rate. One point is 1% of the loan amount.
one point equals 1% of the face value of the loan; charged by the lender
Fees paid to the lender or broker for the loan and are often linked to the interest rate. By paying points, you can lower the interest rate.
One-time lender charge for originating a loan; a point is 1 percent of the mortgage amount.
the basic measure of type; there are 72 points to the inch, or 12 points to the pica
A percentage point, equal to one percent of the loan. (e.g., two points on a $100,000 mortgage would cost $2,000). Generally used to “buy-down” the interest rate of the loan by prepaying interest.
A point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $100,000, one point means you pay $1000 to the lender. Lenders frequently charge points in both fixed-rate and adjustable-rate mortgages in or
Fees paid to a lender for a loan. They are often linked to the interest rate and are generally used to lower the interest rate of the loan. Back to Glossary Index
A form of loan fee generally charged by long-term lenders at loan origination to cover a portion of the lenderâs administrative and funding costs. Points typically are expressed as a percentage of the total loan. For example, 3 points equals 3% of the loan amount.
Prepaid interest assessed at closing by the lender. A point equals one percent of the loan amount.
A one-time charge paid by the borrower to decrease the interest rate of the loan. One point corresponds to 1% of the mortgage loan amount.
A fee paid to lenders to lower the interest rate on the mortgage. One point equals one percent of the total mortgage amount.
Amounts paid by the borrower or, in some cases, the seller, which increase the effective yield for a lender. Each point equals 1 percent of the loan.
Charges levied by the mortgage lender that are usually payable at closing. One point represents 1% of the mortgage loan's face value.
Each point equals 1% of the principal amount of the loan and is considered to be prepaid interest. A one-time charge the lender assess at closing that increases the yield on a mortgage loan to a competitive position with other types of investments.
1% of loan amount paid to lender as a fee
A charge by the lender for originating a loan, which is expressed as a percentage of the loan amount. For example, 2 points of a $100,000 loan is $2000. Often you can pay extra points at closing to reduce the interest rate you are paying over the life of the loan.
Discount charges imposed by the lenders to buy down the interest rate of a new mortgage. One(1) point equals 1% of the loan amount. (Example: $100,000 loan; 1 point (1%) = $1,000)
One point is equal to 1% of the loan amount. Points have two purposes: They are the lender’s profit. They can be a trade-off for a lower interest rate. For example, you could be offered a 30-year fixed loan at 7.5% with no points or the same loan at 7% interest with two points. These two points are a trade-off for getting an interest rate of .5% less.
An originating fee or a percentage based on the amount of mortgage money advanced, to be paid by the seller.
Percentage paid up-front on amount borrowed. Sometimes used in connection with “buying-down” an interest rate. Each point equals one (1) percent of the loan amount.
A fee charged by a lender to redact the interest rate expressed as a percentage of the loan amount. Points essentially represent a prepayment of future interest.
Fees charged by the lender. Each point represents 1% of the amount of the loan.
Fees charge by the mortgage lender payable at closing. 1 point = 1% of the total amount of the mortgage loan.
A point is a fee equal to 1%% of the principal amount of your mortgage, which is paid to the lender. Example: with a $100,000 mortgage, one point is equal to $1,000. This usually paid at closing. Points may be paid by the borrower or the home seller, or may be split between them.
A percentage of the loan amount that lenders charge for making the loan, typically1 to 5 percent, depending on the term of the loan and the interest rate offered.
Charged by the lender and paid by the buyer or seller. One point is equal to 1% of the purchase price.
Fee charged at closing for making the loan. This fee is equal to a percentage of the loan amount. For example, 2 points = 2%, if the loan amount is $200,000, then 2 points would be a $2000.00 fee at closing.
or loan origination fees are fees charged by the lender for processing the loan. The fees are usually expressed as a percentage of the loan. A loan origination fee of 2% -- usually called '2 points' -- means you pay 2% of the total amount you borrow to the lender. Loan origination fees are usually paid in cash at the closing. Sometimes the money needed to pay the points may be borrowed as part of the mortgage - increasing the mortgage amount and the total amount you are required to pay back.
A one-time charge paid by the borrower to the lender at closing to obtain a lower interest rate on the mortgage loan. One point equals 1% of the loan amount; therefore, two points on a $100,000 mortgage would cost $2,000.
A term used to describe a major cost of the loan to a borrower. One point equals 1 percent of the principal amount of your mortgage.
There are two types of points that can be applied to a home mortgage. Discount points are used to reduce the loan's interest rate and origination points may be added to cover the expenses associated with processing a loan. One point equals one percent of the loan amount. This means that, to lower your interest rate by one point on a $300,000 mortgage, you'll need to pay an additional $3,000 at closing.
Are interest, usually paid at closing. A point is 1% of the loan amounts.
Origination fees charged by the originating lender or broker and/or discount fees charge by lenders to increase the overall yield. A point is equal to one percent of the principal amount of your mortgage.
A one-time fee charged by the lender to originate the mortgage; a point is 1 percent of the amount of the mortgage. Purchasing a point should cause the interest rate to be decreased. Points are a good idea if you plan on staying in a property for an extended period of time, decreasing the amount of interest you will pay over the course of many years.
The amount equal to 1 percent of the principal amount of the loan. For example, if the loan is $50,000, a point would be $500. Points are charged by the lender to increase the yield on a loan to make it comparable with other types of investments. Once only used with government loans, points are now synonymous with "loan fee." back to the top
One time charge by the lender in order to increase the yield of the loan, one point is one percent of the amount of the loan.
A loan-origination fee (one-time charge paid for the use of money) that a buyer generally may deduct as interest; fully in the year paid if for the purchase or improvement of a principal residence or, if not, then ratably over the term of the loan.
A one-time charge assessed at closing by the lender for the cost of the loan. One point is equal to one percent of the loan amount.
(Loan Discount Points) - Prepaid interest assessed at closing by the Lender. Each point is equal to 1% of the loan amount. For example, 2 points on a $100,000 mortgage would cost $2,000.
Each point is 1% of the amount you are borrowing.
1 point is equal to one percent of the loan value, etc. Points can be loan origination fees otherwise known as discount points which reduce the interest rate of the loan. For example, when a lender quotes a rate of 7 1/2% with 1 + 1 points, 1 point is for the discount fee. and 1 point is for the origination fee.
A fee charged by the lender as additional compensation for making the loan. One "point" is equal to 1% of the principal amount of the loan.
a point is equal to one percent of the mortgage amount. This is a charge by the lender which will increase the yield of the mortgage.
A point is equal to one percent of the amount of your credit line. Points are a closing cost which, under certain circumstances, may be recognized as interest by the IRS.
One point equals one percent of the total mortgage loan amount. Buyers often pay lenders a supplemental fee, calculated in points, to get a better mortgage interest rate.
Finance charges paid to the lender as part of your closing costs. One point is equal to one percent of your total mortgage loan. Paying points will lower your interest rate and may be a good idea if you intend to keep a loan long-term. (See Origination Fee.)
One percent of the principal amount of a mortgage; lenders often charge points to increase the yield on a mortgage and to cover loan closing costs; the home buyer, seller or both can assume this cost, usually due at closing.
Points are also called discount points, mortgage points, loan discount points, loan origination fees, and maximum loan charges. A point is equal to 1 percent of the loan amount. For example, one point on a loan of $150,000 is $1,500. Lenders consider mortgage points as interest that you pay in advance. As a result, the more points you pay when you close the loan, the lower your interest rate. If you qualify, you may be able to deduct mortgage points in the year you close the loan for tax purposes. Otherwise, you will have to amortize the points paid over the term of the loan.
Finance charges paid to the lender as part of the closing costs. Each point equals one percent of your total mortgage loan. Points can be negotiable and are sometimes tied to your interest rate. Paying more points to get a lower interest rate may be a good idea if you plan to occupy your home for the long term.
The number value assigned to a software title to determine eligibility for a discounted purchase price.
A point is one percent of the amount of the mortgage loan. Points may be used as the origination fee or as discount points to reduce the interest rate.
A point is equal to one percent of your mortgage loan. You may want to consider "buying down" your interest rate by paying discount points up front - especially if you plan to own your home for a long time.
Just like the movie industry, the real estate industry has "points." A point is 1% of the amount of something. If you are applying for a $200,000 loan and the broker charges two points, the fee would be $4,000.
prepaid interest assessed at closing by the lender. It is the percentage of the loan amount that is credited to you. Each point is equal to 1 percent of the loan amount. For example, two points on a $100,000 mortgage is $2,000.
each point is equal to 1% of the total amount of a mortgage.
Is an up front fee that is collected in addition to the promissory note interest rate, Each point charged is equal to 1 % of the loan amount. Points maybe called an origination fee or discount points depending on the purpose.
A dollar amount paid to a lender for making a loan. A point is one percent of the loan amount.
See “Discount Pointsâ€(tm)
Also known as discount points, a fee charged by the lender to fund a loan, in addition to and separate from other fees charged. One Point equals one percent of the amount of the loan. Discount points are charged or are received based on the note rate the borrower selects. Additionally, a one-point origination fee is typically charged by a lender to underwrite a residential loan.
A fee that the borrower pays to a lender to receive a lower interest rate on a loan.
Charges levied by the mortgage lender and usually payable at closing. One point represents 1% of the face value of the mortgage loan.
See Discount Points Points are fees the borrower pays the lender at the time the loan is closed, expressed as a percent of the loan. On a $100,000 loan, 2 points means a payment of $2,000. Points are part of the cost of credit to the borrower, and part of the investment return to the lender.
A one-time special fee or extra charge paid to a lender in order to secure a loan. Expressed as a percentage of face amount of mortgage.
Points are fees the borrower pays to the lender to reduce the interest rate and monthly payments on a loan. Usually prepaid at the time of closing, one point is equal to 1% of the loan amount. Thus, on a $100,000 loan, one point would cost the borrower $1,000 in cash, and reduce the percentage rate on the loan by one percent.
A fee charged by the funding lender, paid in cash at closing or financed in a refinance to reduce the interest rate below par value.
A point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $165,000 one point means $1,650 to the lender.Points usually are collected at closing and may be paid by the borrower or the home seller, or
A point is equal to 1 percent of the amount of your credit line. Points usually are collected at closing and are in addition to monthly interest.
A fee paid to a lender for the lender’s service in making the loan. Typically a point is equal to one percent of the amount of the loan. Points are not deductible as an expense, but must be written off over the life of the loan.
Fees that are collected by the lender in exchange for a lower interest rate. Commonly called discount points, each point is equal to 1% of the loan amount. For our comparison purposes, a discount point is considered to be a lender fee. To determine if it is wise to pay discount points to obtain a lower rate, you must compare the up front cost of the points to the monthly savings that result from obtaining the lower rate.
A fee paid to the lender at the time that you get your loan to reduce the interest rate or otherwise change the terms of the loan.
Points are a one-time charge in order to adjust the price of your loan to prevailing market conditions. Each point is equal to one percent of the loan amount. For example, two points on a $100,000 loan amounts to a charge of $2,000. Points may be included in your closing costs.
A charge levied by the lender on the borrower for the mortgage for prepaid interest. Each point is equal to 1% of the principal of the mortgage.
An upfront fee that the borrower pays the lender to get the loan. Each point equals 1 percent of the total amount of the loan.
Charges levied by the lender based on the loan amount. Each point equals one percent of the loan amount; for example, two points on a $100,000 mortgage is $2,000. Discount points are used to buy down the interest rate. Points can also include a loan origination fee, which is usually one point.
An up front fee a Lender may charge for a loan, expressed as a percentage of the loan amount. "One point" equals one percentage of the loan amount. Thus, one point on a $10,000 loan is $100 ($10,000 X .01).
A dollar amount, expressed as a percentage of the mortgage amount, which is paid to a lender as consideration for making a loan. Also called discount points.
Additional charges placed on borrowed money for a mortgage, usually levied when money is tight.
Each point is an amount equal to 1% of the principal amount of an investment or note.
An upfront fee that is collected in addition to the interest on a loan. One point is equal to one percent of the mortgage. The use of points allows the lender to raise its yield above the apparent interest rate and reduce the rate by lowering the origination costs. Points may also be referred to as an 'origination fee' or 'discount points' depending on the purpose.
A charge made by the lender for loaning money. One point equals one percent of the loan.
A point is equal to 1% of the total loan amount. Often times points are paid at closing.
An amount of money paid to a lender to obtain a loan at a certain interest rate. A point is one percent of the principal amount of the loan. For example, if a loan is for $100,000, one point is $1,000. Points are paid at closing. Buyers are prohibited from paying points on FHA or VA guaranteed loans; however sellers can pay. On a conventional mortgage, points may be paid by either buyer or seller or split between them.
Charges levied by the mortgage lender and usually payable at closing. A point is typically one (1) percent of the face value of the mortgage amount.
The amount paid by the borrower to increase the yield of a mortgage to the lender. Sometimes called points, loan brokerage fee, or new loan fee. The discount is computed on the amount of the loan, not the selling price of the property.
One point is equal to one percent of the initial loan balance. Expressed as percentages, points are the fees borrowers pay to a lender to obtain a real estate secured loan. Each point is one percent of the loan amount. As with other prepaid finance charges, points are non-refundable, subject to applicable law.
Probably one of the more confusing terms in lending. A point is 1% of your loan (if you're borrowing $100,000, one point is $1,000). Points are, actually, up-front interest payments. The goal of paying points is to buy down your interest rate and secure a lower monthly payment.
Certain charges paid to obtain a home mortgage. Points may be deductible as home mortgage interest if you itemize deductions. If you can deduct all of the interest on your mortgages, you may be able to deduct all of the points paid on the mortgage. If you pay points to get a loan (including a mortgage, second mortgage, line of credit, or a home equity loan), do not add the points to the basis of the related property.
Sometimes called "discount points." A point is one percent of the amount of the mortgage loan. For example, if a loan is for $25,000, one point is $250. Points are charged by a lender to raise the yield on their loan at a time when money is tight, interest rates are high, and there is a legal limit to the interest rate that can be charged on a mortgage. Buyers are prohibited from paying points on HUD or Veterans Administration guaranteed loans (sellers can pay, however). On a conventional mortgage, points may be paid by either buyer or seller or split between them.
Points are a percentage of the loan amount paid at closing that may affect your interest rate. For instance, on a $90,000 loan amount, 1 point = 1 % or $900. If you pay points, you may buy down the rate. Alternatively, in exchange for a higher rate, the lender may pay points to offset your closing costs. These are considered negative points.
One point is equal to 1 percent of the principal amount of your mortgage. For example, if the mortgage is for $65,000, one point equals $650. Lenders frequently charge points in both fixed-rate and adjustable-rate mortgages in order to increase the yield on the mortgage and to cover loan closing costs. These points usually are collected at closing and may be paid by the borrower or the home seller, or may be split between them.
A point is something a lender uses to ensure their yield on a loan. A Point is typically a charge equal to 1% of a particular loan and typically a point will buy a buyer 1/5 of a percentage decrease in their interest rate for that particular loan. If you want a 6% interest rate and all the lenders you approach can only offer 6.25 with no points you may want to think about the implications of a prepaid point to reduce the interest rate over the term of the loan.
Points are prepaid interest on your mortgage, charged by the lender at the time of the closing. Each point is one percent of the loan amount that is, 2 points on a $100,000 mortgage would be $2,000.
a percentage of the loan amount which the borrower pays in order to reduce the rate/payment on the loan. Points can be called by a variety of names such as oringination fee, discount points, warehouse fees and broker fees. We consider "points" as points and consider any other description as confusing to the borrower. Please note that the points quoted by Benchmark are inclusive of all variations. On purchases, these fees are "deductible" in the year that you pay them, but on a refinance, the deduction must be spread out over the life of the loan.
An amount equal to one percent of the principal amount of a note. Loan discount points are a one-time charge assessed at closing by the lender to increase the yield on the mortgage loan to a competitive position with other types of investments.
A percentage of the principal conventional loan amount. A lender often charges a borrower "service-charge" points for making a loan. Points may cover expenses in origination the loan, to increase a lender's yield or to "buy down" the rate. In convensional financing, points may be paid by the buyer or seller.
See "Discount Points" definition.
Also called Discount Points. A point is equal to one percent of the principal amount of your mortgage, and are usually a one-time fee collected at closing. The number of points you pay may vary, depending on the type of loan and interest rate option. Points may be paid by the borrower or the home seller, or may be split between them.
Calculated as one percent of the loan amount, points or discount points are charged by the lender to issue a loan at below-market rates. Buyers and sellers, or buyers and lenders, can negotiate points. Those points charged as prepaid interest may be tax deductible for the buyer, depending on his or her tax bracket.
The amount of prepaid interest you will be assessed at closing. Each point is equal to 1 percent of the loan amount (i.e. two points on a $100,000 mortgage would cost $2,000).
Charges levied by a mortgage lender, usually paid at closing. One point equals 1% of the value of the loan.
A point or discount point is one percent of the loan amount and is charged by the lender to issue a loan at below market rates. Points can be negotiated between buyer and seller or buyer and lender. Points charged as prepaid interest are tax deductible by the buyer based on one's tax bracket.
A “point” is one percent of the principal amount of a loan, paid to the lender at the time the loan is made to give the lender an additional yield above the interest rate. Because of the points paid at the outset, the lender is willing to make the loan at a lower interest rate.
(Also called “Discount Points”) A unit of measure for charges on loans; one point is 1 (one) percent of the loan amount. For example, if the borrower is assessed a two-point discount fee on a $150,000 loan, that borrower must pay $3,000 ($150,000 x 2.00 percent) as the discount fee. Often, paying points up-front relates to a lower interest rate on a loan.
A term used to describe loan discounts by the mortgage lenders. A point is 1% of the amount of the mortgage.
fees paid to the lender for the loan. One point equals 1% of the loan amount. Points are usually paid in cash at closing. In some cases, the money needed to pay points can be rolled into the loan, which will increase the loan amount.
The amount paid either to maintain or lower the interest rate charged. Each point is equal to one percent (1%) of the loan amount (i.e., two points on a $100,000 mortgage would equal $2,000).
The prepaid finance charge. This is considered prepaid interest, and is the money paid as compensation to the agents and companies responsible for putting together your loan. Assessed at closing by the lender. Each point is equal to 1 percent of the loan amount.
Fee paid by a borrower to obtain a loan. A point is one percent of the principal amount of the loan. The borrower may usually pay more points to reduce the interest rate of the loan.
A one-time payment to lower the interest rate on a mortgage.
Points is another name for a percentage of interest. One point equals One percent of interest. So if a lender says that he will charge you 2 points for the loan, he is saying that you will be charged 2% up front for a loan fee.
A loan fee charged by lenders to increase their return on the transaction. A point is equal to one percent of the mortgage loan amount.
A one-time charge paid to a lender in order to secure a loan. Expressed as a percentage of face amount of mortgage and designated as either origination or discount.
A prepaid finance charge assessed by the lender at closing. Paying points will decrease the loan's interest rate. One point equals 1 percent of the loan amount. They are also called discount points.
Fees associated with obtaining a mortgage, usually paid at closing. One point equals one percent of the mortgage amount.
a unit of measure used in typography. 72 points equal 1 inch; 12 points equal one pica.
A one time charge by the lender to increase the yield of the loan; a point is 1 percent of the amount of the mortgage.
An upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., 3 points means a charge equal to 3% of the loan balance. It is common today for lenders to offer a wide range of rate/point combinations, especially on fixed rate mortgages (FRMs). Points are sometimes termed discounts and premiums, respectively.
Loan fees charged by the lender that help to increase the profit related to a particular quoted interest rate. A point is typically one (1) percent of the mortgage amount.
Prepaid interest paid by the borrower to the lender at closing. Generally, by paying more points at closing, the borrower reduces the interest rate of his loan and thus future monthly payments.
Charges levied by the lender based on the loan amount. Each point is one percent of the loan amount; for example, one point of a $100,000 mortgage is $1,000. Discount points are used to buy down the interest rate.
Usually paid by the seller, a point is 1 percent of the loan balance and is changed by the lender to issue a loan. Points can be a negotiable item between a buyer and seller or a buyer and lender and usually range from 1 up to 7 or 8. Commonly 1 to 4 points are paid on a conventional loan.
Also known as a loan's "origination fee," points are interest charges paid up-front when you close on your loan. Points are actually a percentage of your total loan amount (one point is equal to 1 percent of the loan amount). For a $100,000 loan, one point costs you $1,000. Generally speaking, the more points that a loan has, the lower its interest rate should be. All the points that you pay on a purchase mortgage are deductible in the year that you pay them. If you refinance your mortgage, however, the points that you pay at the time that you refinance must be amortized over the life of the loan. If you get a 30-year mortgage when you refinance, for example, you can deduct only one-thirtieth of the points on your taxes each year.
A sum paid to lender as prepaid interest or other related fees for making a loan. A point equals one percent of the loan amount.
Points paid for refinancing must be spread out over the life of the loan tobe deductible on a person's income tax. Back to the Top
A one-time charge imposed by the lender to lower the rate at which the lender would otherwise offer the loan to you. Each point is equal to one percent (1%) of the mortgage amount. For example, if a lender charges two points on a $80,000 loan this amounts to a charge of $1,600.
are payment made to a bank as consideration for issuing a mortgage. These are usually based upon a percentage of the loan amount.
A point equals 1% of the mortgage loan principal and is paid to the lender.
One point equals 1% of the mortgage amount. This is a closing cost and may be tax deductible (have members consult their tax advisor). Typically, the more points paid at the time of closing, the lower the interest rate on the mortgage.
Amount of discount on a mortgage loan stated as a percentage; one point equals one percent of the face amount of the loan; a discount of one point raises the net yield on the loan by one-eighth of one percent.
A fee charged by a lender as a service charge or as an amount needed to make the yield on a mortgage competitive with other types of investments. Each point represents 1% fo the loan amount.
Interest charges that you pay up-front. Also called a loan origination fee. Every point is 1 percent of your loan amount. With a $100,000 loan, for example, one point equals $1,000. Generally, the more points the loan has, the lower the interest rate will be. Points are only deductible the year that you pay them (the year you purchase your home).
Interest prepaid to the lender at closing. Each point is equal to 1% of the loan amount. Paying more points at closing generally reduces the interest rate (and therefore monthly payments) on a loan.
Finance charges paid by a borrower at the beginning of a loan. One point is equal to one percent of the loan amount. Generally paid to lower an interest rate.
The largest cost associated with getting a home mortgage is usually points. Every point represents one percent of the mortgage balance, or $1,000 for each $100,000 financed. Points can not be financed into your payment and must be paid with cash at the close of escrow. Common types of points are discount points, or fees paid by the borrower to reduce the interest rate of the loan. The more points you agree to pay upfront, the lower your interest rate will be. Whether or not to pay points depends on many factors including: the length of time you plan to own the house, the amount of cash you have available after making the down payment, and the amount of the discount. Take a good look at the costs and payment schedule of the different types of loans when deciding which one is best for you. If you do not have extra cash to pay points, but still want to lower your interest rate, you may find that some sellers are willing to pay the discount points or other closing costs in order to sell their property.
Prepaid interest on the amount that you borrow, generally to buy real estate. For example, you may pay one point (equal to 1% of the loan) or two points (equal to 2% of the loan). The number of points you pay represents a percent of the loan.
Upfront fee charged by a lender, separate from interest but designed to increase the overall yield to the lender. A point is 1% of the total principal amount of the loan. For example, on a $200,000 mortgage loan, a charge of 3 points would equal $6,000. Since points are considered a form of prepaid mortgage interest, they are tax deductible, usually over the term of the loan, but in some cases in a lump sum in the year they are paid.
A one-time charge by the lender for originating a loan. A point is one percent (1%) of the amount of the mortgage.
is a charge by the lender which increases the yield of the loan, one point is equal to one percent of the amount of the loan.
A point is equal to one percent of your mortgage loan. Typically points are paid to "buy down" an interest rate by paying discount points up front.
The borrower can purchase points in exchange for a lower interest rate. One point is equal to one percent of the loan amount and can decrease the interest rate by 1/8 to 1/4 percent. Before purchasing points, it is important to determine if the up-front cost will justify the long-term savings.
The percentage deduction from the nominal amount of a discounted loan, often charged as a finders fee. On a $1,000 loan discounted two points, the borrower receives $980 (one point equals 1 percent).
A term used to describe a fee charged by a lender based on the mortgage amount. One point equals one percent of the mortgage amount. Points are often charged in consideration of a lower interest rate.
A one-time charge by the lender to increase the yield of a loan. Equal to one percent of the loan amount and paid at closing.
A dollar amount paid to a lender, typically to obtain a lower interest rate. One point is equal to one percent of the loan amount.
are an up front payment based on percentage of the total loan amount. one percent of the loan amount equals to one point. these charges are paid up front. Points are sometimes referred to as loan origination fees.
Upfront fee lenders charge to reduce an interest rate. Each point typically equals 1 percentage point of the total amount of the loan.
A charge made by the lending institution to the borrower that is based on the mortgage amount. A point is one percent of the principal mortgage amount..
A fee charged by the lender to reduce the interest rate on the loan. Not usually a investment.
additional money paid at closing to the lender in return for a lower interest rate.
One percent of the principal amount of the mortgage loan. For example, if a loan isfor $100,000, one point is $1,000. A lender charges points to raise the yield on the loan to cover loan closing costs. They are used at a time when money is tight, interest rates are high, and there is a legal limit to the interest rate that can be charged on a mortgage. Buyers are prohibited from paying points on HUD or Veterans' Administration guaranteed loans (sellers can pay, however). On a conventional mortgage, points may be paid by either buyer or seller or split between them.
An amount equal to 1% of the principal amount of the mortgage. Points are a one-time charge.
charged in both fixed and adjustable rate mortgages to increase mortgage yield, and cover closing costs. A "point" is 1% of the amount of the mortgage.
A one-time fee charged by a lender for processing a mortgage loan. One point is equal to one percent of the amount of the loan.
Sometimes called "discount points." A point is one percent of the amount of the mortgage loan. For example, if a loan is for $100,000, one point is $1000. Points are charged by a lender to raise the yield on his loan. On a conventional mortgage, either the buyer or the seller may pay points. Sellers must pay points on a VA loan.
A mortgage term that is typically used to refer to 'discount points.' A point, as the word is now used, is simply pre-paid interest. One point equals 1% of the loan amount. Most loans are now quoted with '0' points. If you choose to pay points, your interest rate will normally be reduced. For each point paid, the interest rate will normally be reduced by 1/4 of 1%.
Prepaid interest. One point equals 1% of the loan amount and is paid in order to lower the interest rate.
Finance charges paid by the borrower at the beginning of a loan in addition to monthly interest; each point equals one percent of the loan amount.
Points are fees charged by a lender on the money borrowed. Typically the more points paid, the lower the rate of interest a customer pays on a given loan product. One point equals one percent of the loan amount. They are also sometimes referred to as discount points.
Prepaid interest that is collected at closing. This money is used to buydown the interest rate of a mortgage.
charges paid by a borrower that are usually one percent of the loan amount.
The site allows lenders to post rates via point ranges. Points are broken out on the site for Discount and Origination. The definitions for each are as follows: Discount Points = Interest Charges paid up-front when a borrower closes a loan. A point is equal to 1 percent of the loan amount (e.g. 1.5 points on a $100,000 mortgage would cost the borrower $1,500). Generally, by paying more points at closing, the borrower reduces the interest rate of his loan and thus future monthly payments. Origination Points = A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent.
An upfront fee charged by a lender to process a mortgage. Each point represents 1% of the loan amount. So a $120,000 loan "with one point" means a fee of $1200. For most (but not all) loans, the points must be paid at the close of escrow, and cannot be added to the amount of the loan.
See Discount Points and Origination Points.
Units of 100% with each unit being 1.00% or 100 basis points being the equivalent of 1% (e.g., 5 points is equivalent to 5%). The terminology is typically used in conjunction and reference to interest rates, commissions, discounts, service fees and other similar charges.
Part of the closing costs paid to the lender at closing. Each point equals 1% of the home loan amount.
A point equals 1 percent of a mortgage loan. Lenders charge points as a way to make a profit. Borrowers may pay discount points to reduce the loan interest rate. Buyers are prohibited from paying points on HUD or VA guaranteed loans. On a conventional mortgage, points may be paid by either buyer or seller or split between them. Within limits, points are usually tax deductible. Also see interest tax deduction. Back
An upfront fee charged by many lenders. One point is equal to one percent of the loan principal.
Prepaid interest charge at closing. One point equals one percent of the loan
A dollar amount paid to a lender for making the loan. A point is 1 percent of the loan amount; also called discount points.
Fees paid to lenders. 1 point = 1% of the loan amount. On a $100,000 loan 1 point is $1000. Points may be further classified into origination points or discount points.
a one time fee paid to the lender to close a home equity loan. One point is one percent of the loan amount.
Fees paid to induce lenders to make a mortgage loan. Each point equals 1% of the loan principal. Points have the effect of reducing the amount of money advanced by the lender. Same as discount points.
Interest charges paid up-front when a borrower closes on a loan. Also known as a loan's origination fee, points are actually a percentage of the total loan amount (one point is equal to 1 percent of the loan amount). For a $100,000 loan, one point costs $1,000. Generally speaking, the more points that a loan has, the lower its interest rate should be. All the points paid on a purchase mortgage are deductible in the year they are paid. If you refinance your mortgage, however, the points that you pay at the time that you refinance must be amortized (spread out) over the life of the loan. If you get a 30-year mortgage when you refinance, for example, you can deduct only one-thirtieth of the points on your taxes each year.
See Discount Points above
Prepaid interest on the borrower's mortgage, charged by the lender at the time of the closing. Each point is one percent of the loan amount. For example, 2 points on a $100,000 mortgage would be $2,000.
Premium charges on a loan that may be deducted as interest.
When refinancing, the amount you pay the lender at the closing of the loan. Each point is equal to 1 percent of the mortgage loan.
1% of the amount of the mortgage loan. For example, if a loan is made for $50,000, one point equals $500.
Points are an up-front fee paid to the lender at the time that you get your loan. Each point equals one percent of your total loan amount. Points and interest rates are inherently connected: in general, the more points you pay, the lower the interest rate you get. However, the more points you pay, the more cash you need up front since points are paid in cash at closing.
Points are prepaid finance charges added to a loan, and designed to increase a lenders yield over the stated rate. One point equals 1% of the loan amount. If you were to pay 3 points on a $120,000 loan to get a 7% interest rate for example, you would pay $3,600 in prepaid interest (3 points). If you choose to lower your interest on a 30-year loan by paying points up front in cash, you'll probably save money over the term of the loan. (Run your specific scenario with amortization charts to see your savings.) On the other hand, points, in some cases, may be financed in the mortgage itself.
Points are prepaid interest paid by the borrower on a mortgage loan typically paid to the lender to reduce the interest rate. A measurement expressed in percentages / basis points.
1” point equals “1” percent of the amount of the mortgage
Points are equal to the percentage an artist earns as royalties (royalty rate). (i.e. 12 points equal 12% royalties). However, this number is not necessarily a constant, many companies will only pay 85% of this royalty rate for CD's.(see Royalties)
A one-time charge by the lender to decrease the interest rate on a loan. Points may be paid by the buyer or seller, or split between them. Points, which are stated as a percentage of the principal amount of the loan, are payable at the closing of the loan.
A point is one percent of the amount of the mortgage. Lenders charge borrowers a percentage of the loan amount equal to the number of points to cover the lender's cost. Sometimes borrowers pay higher points in exchange for a lower interest rate.
Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000).
Prepaid fees, often used to decrease the interest rate on a mortgage, or to induce lenders to make a mortgage loan. One point equals one percent of the loan principal. Points have the effect of reducing the amount of money advanced by the lender. Mortgage lenders commonly charge one point as a loan origination fee. Additional points may be charged to raise the loan yield to current market interest rates.
Service charge computed as a percentage of the loan amount. This can also be called an origination fee. One point equals 1% of the loan amount.
A fee charged by a lender at closing; usually, one point is equal to one percent of the loan amount.
One-time cash payment made upfront or at settlement to reduce the interest rate on the loan. One point is equal to one percent of the mortgage amount.
One point is equal to 1 percent of the amount of the credit line. Points must usually be paid at closing and are in addition to monthly interest.
An amount paid to a mortgage lender, at the time of closing, above and beyond the regular interest payments. Each point equals 1% of the mortgage face amount. When you are buying a home, points are tax-deductible in full for the year you pay them, provided that they aren't out of line for your area and that they represent prepaid interest, which they usually do. If you pay points when you refinance, however, you must amortize the tax deduction over the life of your loan.
A one-time charge paid to the lender for issuing a loan. A point equals 1% of the loan amount.
A point is one percent of the amount of the loan. On a $50,000, one point is $500 while on a $200,000 loan, one point is $2,000. When a borrower pays points, this first includes the Loan Origination Fee. Additional points are called "discount points" and are an off-set against interest rate. Lenders will, these days, almost always offer a number of "rate versus fee" combinations allowing the borrower to choose one which is most suitable for his circumstance.
When a buyer or seller pays extra at closing to decrease the interest rate of a loan. One point is equal to one percent of the loan amount.
A one-time-only fee you pay up front to your lender, sometimes in exchange for a slightly lower mortgage rate. One point equals one percent of the total amount you plan to borrow.
Up-front interest to compensate the lender for processing a mortgage. Also known as "loan origination fees." Each point equals 1% of the loan. Points are also referred to as "discount points" because usually the more points paid, the lower the interest rate.
A point is one percent of the loan amount. Points are paid to the loan originator and to the funding lender at close of escrow.
A dollar amount paid to obtain a specific interest rate. One point is 1 percent of the loan amount. Also called discount points.
Money paid to a lender at closing in exchange for lower interest rates. Each point is equal to 1% of the loan amount.
a one time charge imposed by a lender at the closing of a loan. Each point equals one percent of the loan.
A fee sometimes paid to mortgage lenders at closing (usually 1% or 1 point of principle); it buys a lower interest rate for that loan (in theory). The best thing to do is shop around with different lenders to get the best interest rate in the first place.
There are loan origination points and loan discount points. Loan origination points are charged to handle the loan. Loan discount points are charged to buy-down the interest rate.
An upfront cash payment required by the lenders as part of the charge for a loan. It is a percent of the total loan amount.
A loan discount, which is a one-time charge, used to adjust the yield on the loan to what market conditions demand. Each point equals 1% of the principal amount.
Prepaid interest a borrower pays to a lender at closing. A point equals 1% of the total principal of the loan. For example, on a $100,000 mortgage four points would cost a borrower $4,000.
Fees paid to the lender to reduce the interest rate of a loan. One point is equal to 1% of the amount financed.
One point equals 1% of the loan amount. Total points on a loan include origination points, used to offset the cost of making a loan, and discount points, which can be paid to reduce the loan's interest rate.
Fee charged by a lender in return for a lower interest rate on a loan. Each point represents one percent of the mortgage value.
A point is equal to one percent of the principal amount of a mortgage, see also Discount Points.
Charges levied by the mortgage lender to obtain a better interest rate and usually payable at closing. One point represents 1% of the mortgage loan amount.
Origination and discount points paid to a lender, e.g. 2 points = 2% of the total loan. If a a loan is $200,000 then 2 points is $2,000.
Fees described as percentages. For example, "2 points" equals 2% of the loan amount. (e.g., two points on a $100,000 mortgage would cost $2,000).
Sometimes called "discount points". A point is one percent of the amount of the mortgage loan amount. (eg: For a $50,000 loan, one point is $500). Points are interest paid in advance and allow a borrower to buy a lower mortgage rate, which results in a lower payment. For borrowers who are not able to cover the cost of points in addition to the other costs of buying a home, or for those who do not plan to stay in the house for long, 0 points are preferred. Buyers are prohibited from paying points on HUD or VA guaranteed loans (sellers can pay, however). On a conventional mortgage, points may be paid by either buyer or seller or split between them.
Fees paid to induce lenders to make a mortgage loan. Loan service charge equals 1% of the amount of the loan principal and must be paid up front. It is a one-time charge that has the effect of reducing the amount of money borrowed.
Fees paid to induce lenders to make mortgage loans at a particular interest rate. Each point is equal to one percent (1%) of the loan principal. Same as discount points.
One percent of the loan amount. Usually a commission paid for arranging a loan.
A generic term for a percentage of the principal loan amount which the lender charges for making the loan; each point is equal to one percent of the loan amount.
Fee charged at closing for making the loan. This fee is equal to a percentage of the loan amount. For example, 1.0 point = 1%, if the loan amount is $100,000, then 1.0 point would result in a $1,000.00 fee at closing.
are fees paid to the lender for the loan. One point equals 1 percent of the loan amount. Points are usually paid in cash at closing. In some cases, the money needed to pay points can be borrowed, but doing so will increase the loan amount and the total costs.
Charge imposed by a lender in consideration for making a loan secured by real property. A point equals one percent of the loan.
Any amount paid to the lender when a loan is originated to account for the difference between the current market-determined cost of interest and the actual lower interest rate of the loan. In most cases each point is equal to one percent of the original loan amount. Points may be paid by either the buyer or seller.
prepaid interest equal to one percent of a mortgage loan. Lenders generally offer loans with several combinations of interest rates and points. Generally, the more points paid, the lower the interest rate. The best choice of interest rate/points may depend on how often you refinance.
Additional points you can pay a lender to lower the interest rate on your loan at closing. Each point is equal to 1 percent of the loan amount (e.g. two points on a $100,000 mortgage would cost $2,000). Also referred to as Discount Points. Points may include discount points and/or origination fee.
Also referred to as discount points, are monies paid to buy down or lower your rate. Best way to think of it is as prepaid interest. In many cases points are deductible (check with your accountant). If you're thinking about paying points to lower your rate, you may want to consider how long you will have to be in that loan before you make back the cost and begin saving money.
In reference to a loan, points consist of a lump sum payment made by the borrower at the outset of the loan period. Generally, each point equals one percent of the loan amount. See also seller's points.
Amount paid to the lender at closing in exchange for a reduction in the interest rate (and therefore monthly payments) on a loan. One point is equal to one percent of the initial loan balance.
Points are finance charges paid at the beginning of a mortgage in addition to monthly interest. One point equals one percent of the loan amount.
1 point is equal to 1% of the loan value, paid at closing. Points can be loan origination fees or "discount points" which reduce the interest rate of the loan (you are actually paying a finance charge up front). When a lender, for example, quotes a rate of 8 1/2% with 1 + 1 points, 1 point is for the origination fee and 1 point is for the discount fee.
Also known as Discount Points; it is the prepaid interest demanded by a lender when a loan is negotiated. Discount points cost one percent of the face amount of the loan. Example: $100,000 loan = $1,000 of points.
A point equals 1 percent of a mortgage or other loan. Some lenders charge "origination points" to cover expenses of making a loan
A one - time fee you pay the bank for originating a loan. A charge equal to 1% of the loan amount which increases or equalizes the lender's yield or rate of return. Lenders offer various rate/point combinations. back
Points are a form of pre-paid interest. One point equals one percent of the loan amount. By charging a borrower points, a lender effectively increases the yield on the loan above the amount of the stated interest rate.