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The Yi Team Mortgage

Mortgage Experts in Rockville, MD

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    • Apply with Christa Fitch, NMLS #1792406
    • Apply With Chong Yi, NMLS #198732
    • Apply With Derek Harman, NMLS #882287
    • Apply With Erin Finke, NMLS #536279
    • Apply With John Walowac, NMLS #1414681
    • Apply with Jon Ingram, NMLS #1076922
    • More About Each Mortgage Advisor

About Mortgage Points

Jon Ingram was recently interviewed for Money.com about mortgage points. Find out what they are and the pros and cons of mortgage points.

Money.com

What are mortgage points? 

Most mortgage companies have a menu of interest rates available to offer clients for every type of loan.  In most cases, a company will offer a rate that is considered “market”, meaning they will not charge anything beyond their standard processing fees to lock in and obtain that rate.  However, there are also higher and lower rates on the menu as well.  A below market rate can be obtained for a fee, while an above market rate will come with a lender credit given to the client. 

How much do mortgage points cost?

The amount of the fee or credit will vary based on multiple factors including loan amount, daily bond market movement, and the details of your specific loan scenario.   Most mortgage companies are pulling interest rates from multiple investors, including themselves; the rates are offered in real time and subject to change until the lender locks in the terms.  As a rule, they are determined as a percentage of the loan amount, but what that percentage actually is at any given moment depends on the appetite of the investor offering the rate. 

Are there any limits to how many points you can buy?

Yes, rate sheets for a particular loan scenario will have a high and low interest rate.  Every interest rate within that range is generally on the menu.

What are the pros/cons of points? 

The average homeowner will have 5-7 mortgages in their lifetime.  The biggest con related to points is they may create a breakeven period that conflicts with the time horizon for that particular mortgage.

When should you buy mortgage points?

Whether points are appropriate depends 100% on the needs of the client.  A truly professional mortgage advisor will lead an in-depth conversation, asking the proper questions to elicit the goals of the client to offer the best interest rate available for their unique situation.

Learn more about Jon Ingram.

Learn more in Mortgage 101

About Jon Ingram, Senior Mortgage Advisor

CONTACT US

Chong Yi, CMPS
Producing Branch Manager
Apex Home Loans
NMLS #198732
240-763-1101
chong@theyiteam.com
15245 Shady Grove Road, Suite 430
Rockville, MD 20850

 

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© 2021 Apex Home Loans, Inc. NMLS #2884. For more information regarding licensing for all states in which Apex is licensed, please visit the NMLS Consumer Access Website at https://nmlsconsumeraccess.org. Licensing information as required by GA & NJ: Licensed as a Mortgage Lender by the GA Department of Banking & Finance (61858); Licensed by the State of NJ Department of Banking and Insurance as a Residential Mortgage Lender (2884)