What are Points and Fees, and How do They Affect a Mortgage
Understanding the impact of points and fees on your mortgage is essential. Points, also known as discount points, are upfront fees paid to lower your mortgage interest rate. One point typically equals 1% of your loan amount and can significantly reduce the amount of interest you pay over the life of your loan.
Fees, on the other hand, cover a range of costs associated with getting a mortgage, including but not limited to appraisal fees, attorney fees, and loan origination fees. These necessary expenses can vary widely based on the lender, your situation, and the specifics of your loan.
Knowing how points can save you money in the long run and being aware of the various fees involved in your mortgage can help you make an informed mortgage decision.
If you’re looking for guidance on navigating points, fees, or any other aspect of a mortgage, NIHFCU’s home loan specialists are ready to assist.
Reach out to us today for personalized advice and support tailored to your unique situation.
Rates, fees and terms as of April 27, 2024 and subject to change without notice
