| As far as the mortgage loan points are concerned, it is | | | | discount points. |
| quite important for you. Actually this refers to the cost | | | | 3. Suppose the value of your mortgage is $780,000. |
| which you pay on behalf of the loan. There are some | | | | And suppose you are paying for three points. Then |
| of the mortgage points which are called the origination | | | | you will have to multiply it by three and then by 0.01. |
| points. They can not be considered as the optional | | | | This you will get $23,400. This will be the mortgage |
| points. There are some discount points as well and | | | | loan point for you. |
| they are paid to lower the interest rates for the whole | | | | In this way you will be able to calculate the mortgage |
| life of the mortgage. If you want to calculate the | | | | loan points. But you need to keep many things in your |
| mortgage points then you will have to take into | | | | mind. You need to understand the exact meaning of |
| consideration the points which you are generally paying | | | | the origination points and the discount points. Let us |
| and also what you are borrowing. | | | | see one of them. |
| Some of the instructions related to the mortgage | | | | Origination point |
| points are as follows: | | | | There is a fixed percentage which you will have to |
| 1. If you will determine the total amount of loan then | | | | pay as origination. Suppose you have taken the loan of |
| you will come to know about the mortgage loan points. | | | | $500,000. Suppose you have to pay the origination of |
| You should know that the mortgage points are not | | | | the 1.9%. Then in this case, in order to calculate your |
| dependent on the credit score and in fact it is | | | | origination point, you will have to multiple the mortgage |
| dependent on the loan amount. | | | | amounts with the origination percentage. Hence you will |
| 2. Now you will have to determine the number of | | | | have to multiple 500,000 with the 1.9. Thus you will get |
| points which you will have to pay. This can be done by | | | | $950,000. This happens to be your origination point. |
| summing up the total origination points and the total | | | | In the similar way you will be able to calculate the |
| number of the discount points. If you will decide to | | | | discount points as well. Thus you will be able to |
| keep the loan with you without paying off or | | | | calculate the mortgage loan points as it has been |
| refinancing then you will be better entertained by the | | | | discussed above. |