Posted on: 08th Apr, 2009 10:11 am
how much are percentage points?
if you are talking about points as they apply to mortgages, then 1 point is equivalent to 1% of the amount of a loan. for example, if you were to borrow $100,000; a point would be $1000.
Hi
If you are referring to mortgage points, then it is exactly as George had mentioned. 1 point = 1% of the total loan amount. There are actually two types of points I know of:
1. Discount points
2.Origination points
A discount point is paid as prepaid interest. So, the more discount points you pay, the lower would be the rate of interest on the loan. An origination point, on the other hand, is charged by the lender for processing the new loan.
If you are referring to mortgage points, then it is exactly as George had mentioned. 1 point = 1% of the total loan amount. There are actually two types of points I know of:
1. Discount points
2.Origination points
A discount point is paid as prepaid interest. So, the more discount points you pay, the lower would be the rate of interest on the loan. An origination point, on the other hand, is charged by the lender for processing the new loan.
