Posted on: 20th Apr, 2009 09:26 am
My loan officer says that I am consolidating a home loan and a home eguity line of credit this is in essence a "cash out" operation. Therefore I have to pay a 1% loan discount point in addition to the 1% loan origination fee.
Is this a common practice?
Is this a common practice?
he is right in that it often is considered a cash out. the discount point may be needed to get your rate down to a level where the refinance would make sense for you. ask him/her what the rate would be without the discount point, see what the difference in your payment would be (with and without the point), then decide which way you want to go.