Purchase Points
"Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid
to the lender at closing to buy-down or lower your interest rate over the life of the loan. Each
point is equal to one percent of your total loan amount. If you have a $100,000 loan, one point
would equal $1,000. The more points you buy, the lower your interest rate, but the more
money you'll need at closing."
Interest Rate
"When you get a mortgage, you are charged an interest rate.  This is the rate which the lender
charges you for using their money to buy a home. It determines how much your monthly
payments will be. Generally speaking, the higher the interest rate, the higher your monthly
payment."
Fees

"There are always fees associated with getting a mortgage, these fees cover the cost of
processing and underwriting the loan. These fees can include charges for ensuring the title to
the home is free and clear; paying for a land survey; or paying for a home appraisal which
gives you the estimated value of the property (lenders require an appraisal to close on your
mortgage)."
Information Purchase Points, Interest Rate and Fees provided by Yahoo Real Estate 8/10/11
Renee Parekh, Broker
Realtor - 949-861-1124
reneerealestate@yahool.com
"Renee is the best! She has helped
us buy and sell four homes — we'd
never hire anyone else.”
The Greens
Renee Parekh
949-861-1124
reneerealestate@yahoo.com
MORTGAGE INFO