What are points and how many do I have to pay?
Generally speaking, points are fees added onto loans. One point is equal to 1 percent of your loan amount. Points are paid when the loan closes, not at the time you apply for the loan. Keep in mind, Cap Mortgage Inc has no flat fee or points we charge. Everyone is different catering to give you the most competitive rates and programs in the market.
One point is equal to 1% of your loan amount. It is important to remember that discount points are linked to the interest rate for the loan and therefore are a choice, not required. Generally speaking, the lower the interest rate, the higher the points paid. Sometimes it makes sense to pay the extra points and ‘buy’ the rate lower, sometimes it does not. This decision is yours to make, but we will review it with you in-depth and explain your options, the break-even, etc. to determine what final rate and point combination works best for your particular circumstances. You can choose a ‘no-point’ option, or can pay points to get a lower rate. Finally, if you choose to pay points and have a lower rate, they are paid when the loan closes, not at the time of application.
