Loan Costs
Many companies will charge a fee for lending you money. The fee is usually a percentage of
the loan and is sometimes referred to as "points." One point is equal to one
percent of the amount you borrow. For example, if you were to borrow $10,000 with a fee of
eight points, you would pay $800 in "points." The number of points mortgage
companies charge varies, so it may be worthwhile to shop around. If the fee seems too
high, you may be able to bargain for or find a lower fee. Be sure to get the amount of the
fee in writing before you take the loan.
Many states limit the amount of fees a mortgage company may charge on a second mortgage
loan. You may want to check with your state's consumer protection office or banking
commissioner to determine whether there is a limit in your state. |
2nd Mortgages
Home Equity Credit Lines
Length of Second Mortgage
Payment Calculations
Loan Costs
Interest Rates |
