Should You Pay Points?

Let’s say you’re about to buy a house. You’re at a family barbecue on the weekend. The sun is out, the kids are running around, there’s burgers on the grill. Your older brother comes up to you and asks if you found a lender yet. You tell him you got some quotes, and they’re all… Continue Reading

How does mortgage amortization work?

Are you buying a home for the first time? Do you think you will pay off half of the principal of a 30-year mortgage in 15 years? Are you wondering why banks want you to pay off interest before principal? If you answered ‘yes’ to any of these questions, you need to understand how amortization works before getting a mortgage. How amortization works The two most important points that you… Continue Reading

Understanding mortgage points

Mortgage points is a unique American approach to home financing. A mortgage point is an amount equivalent to 1% of the mortgage loan amount. For example, if you take a loan of $300,000, one point would be $3000. There are two kinds of mortgage points: Origination points and Discount points. Origination Points Origination fee is… Continue Reading