What Are Points?If you’re in the market for a new home and looking to become a homeowner, the San Antonio movers are betting on the fact that you must have heard about the word “points” a few times. If you found the home of your dreams and will be financing your mortgage,, it’s important you understand what “points” are as well as know all about their advantages and disadvantages.
In this informational article, the San Antonio movers, also known as All My Sons of San Antonio, will help you get more familiar with the term “points.” “Discount points” are pre-paid interest fees paid to a lender when it’s time to close on the house of your dreams so that your interest rate can decrease. Each “point” is equal to one percent of that loan you’ve acquired. It can decrease your interest rate by at least.25 percent. So for example, if you’re borrowing $200,000, a “point” will cost you $2,000. You should also know that “discount points” rates vary on a daily basis.
There’s another type of “points”, the “origination points”. These are used by the lender to use to cover the overhead costs of the loan. If you plan to stay in the home you’re purchasing for a long time, at least between three and five years, then “discount points” can save you money in the long run, because you’re having to pay a smaller monthly payment. This can make the mortgage payments easier for you and your family. This type of “points” is also tax-deductible so that can save you a little money that same year you bought your new home.
The disadvantage to getting “points” is that you will need more money upfront. Along with that down payment you were saving for, you’ll need more because now your closing costs are higher. If you’re working with a tight budget, purchasing “points” might not be beneficial for you. You also need to live in the same house for several years for these “points” to pay themselves off, so if moving is in your near future or there might be a chance for job relocation, than “points” might not be for you. When you’re ready to move, don’t forget to call the San Antonio moving specialists for a smooth and stress-free moving day. All My Sons of San Antonio is a professional moving company with a huge network of movers and moving offices across the U.S., so you know we’re a reputable moving company. Our local San Antonio movers will quilt pad wrap your furniture and make sure your personal belongings are loaded carefully onto our moving truck and safely assembled in your new home.
When you’re ready to move, you’re ready for the San Antonio moving crew!