+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
In real estate lingo, a point is one percentage point of the overall loan that is paid up-front, typically at the time of closing. For example, if you are borrowing $150,000 on a mortgage loan and will be paying three points, you will pay $4,500 up-front. Paying points generally lowers the interest rate on your loan.
To read the full story on AllBusiness.com, click http://allbusiness.businessweek.com/personal-finance/real-estate-mortgage-loans/3381-1.html
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.