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Paying points mandatory?

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Shannon Gomes Guest	Posted: Tue Jul 05, 2011 12:19 am    Post subject: Paying points mandatory? Like 0 Dislike 0 Is it mandatory for all mortgage loan borrowers to pay points? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Niicss Joined: 03 Oct 2005 Posts: 4834 Location: New Jersey 508.88 Dollars($)	Posted: Tue Jul 05, 2011 1:32 am    Post subject: Like 0 Dislike 0 It is not mandatory for all mortgage borrowers to pay points. The lender cannot force you to pay points. You will find a lot of mortgage lenders offering loans without asking the borrowers for paying points. However, if you pay points, you will be able to qualify for lower interest rates. To know more about points, check out the given page: http://www.mortgagefit.com/know-how/points.html . _________________ Good is the Enemy of Great.
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Tue Jul 05, 2011 5:10 am    Post subject: Like 0 Dislike 0 Points or portions of points typically are a method of reducing the interest rate. It is definitely not a mandatory thing to request the payment of points from all borrowers; though you'll undoubtedly find that some lenders charge points at all times without a no-point alternative. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044
adaboy00 Joined: 07 Jul 2011 Posts: 4 Location: Grand Rapids, MI 1.59 Dollars($)	Posted: Thu Jul 07, 2011 10:23 am    Post subject: paying points mandatory? Like 0 Dislike 0 I agree with the others who commented, however, the banks, in an effort to reduce their exposure to lower credit score, eligible borrowers, have instituted "risk based" pricing. The lower your credit score, the higher the interest rate. Points are typically paid to "buy down" the interest rate in order to qualify for the mortgage or simply to ease the monthly mortgage amount. I don't recommend buying points unless you plan to live in the home for some time. Your mortgage originator will be able to calculate how long into the mortgage your payback will be. Jon
eskyvest Joined: 29 Apr 2011 Posts: 8 2.32 Dollars($)	Posted: Thu Jul 07, 2011 1:37 pm    Post subject: Like 0 Dislike 0 No. It is not required. Some people pay points to buy down the interest rate to reduce their monthly payment. I don't recommend it unless you know for sure you are going to keep the home for a long time. Because you have to pay thousands (1 point is 1% of the loan) to save hundreds or less each month. It takes a while to break even. Val

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