What Are Points, Anyway?
A quick quiz: mortgage “points” are
a) certain charges paid to obtain a home mortgage
b) the gross profit for the originator of the loan
c) up-front mortgage interest fees to reduce the interest rate
d) each equal to 1 percent of the total loan amount
e) loan origination fees
f) charged by a lender to raise the yield on a loan when money is tight, interest rates are high, or there is a legal limit on the interest rate that can be charged on a mortgage
g) come in two varieties
h) all of the above
Answer: h.
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