Points

What the hec are points. I was going to sell my place once, and the buyer asked if the selling price would include my points. Is it my equity?

Comments(1)

  • mattfish1127th December, 2004

    Points is a term usually used to refer to the prepaid interest paid to the lender to pay down your interest rates. A point is 1% of the total cost of the mortgage. For example, you can go to a lender and get a 6% mortgage with no points or pay them 1 point and drop that interest rate doan to 5% (this is just an example). I'm not sure what the buyer was asking when he said if your selling price includes points... That doesn't make sense to me...

    Anybody else?!?

    Good Luck!
    [addsig]

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