What are points and must I pay them? Tell me about Zero Point/ Zero Fee loans?
Points are the portion of the costs of a new loan and are usually represented as either an Origination Fee or Discount Fee. Each point is equal to 1% of the loan amount. So, if your estimate calls for you to pay 1 Point (Pt.) on a $150,000 loan, what that means is that you will pay $1,500 in points The best way to decide whether you should pay points or not is to perform a break-even analysis.
