Do you plan on keeping your loan for a while? Then it may make sense to
"buy" a lower interest rate by paying one or more "points."
Even if you're unsure of how long you plan to keep your mortgage before
you move or refinance, paying points now for a lower rate may make sense.
For example, do you have a high-paying job now but you think you might
change careers in the next few years? We can help you sort it out. It's part
of our finding the right loan for your means and goals.
A point -- which equals one percent (1%) of the total loan amount -- is an
up-front fee that lowers your monthly interest rate and total interest due
over the life of the loan. So, a one point loan will have a lower interest rate
than a no point loan. Basically, when you pay points you trade off paying
money later in favor of paying money now. You can pay fractions of points,
meaning there are a lot of points packages that can make a loan's terms
more favorable if that's what's right for you.
There are a variety of rate and point combinations available. When you look
at different loan programs, don't look just at the rate -- compare the whole
package. Federal law requires lenders to publish their loans' Annual
Percentage Rate, or A.P.R. The A.P.R. is a tool used to compare different
terms, offered rates, and points.
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499 NW 70th Ave Plantation, FL 33317-7500
Phone: 954-689-7777
E-mail: info@teamfleetwood.com
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