|  How
do you "buy" a better rate?
Do you plan on keeping
your loan for a while? Then it may make sense to "buy"
a lower interest rate by paying one or more "points."
Even if you're unsure
of how long you plan to keep your mortgage before
you move or refinance, paying points now for a lower
rate may make sense. For example, do you have a high-paying
job now but you think you might change careers in
the next few years? We can help you sort it out. It's
part of our finding the right loan for your means
and goals.
A point -- which
equals one percent (1%) of the total loan amount --
is an up-front fee that lowers your monthly interest
rate and total interest due over the life of the loan.
So, a one point loan will have a lower interest rate
than a no point loan. Basically, when you pay points
you trade off paying money later in favor of paying
money now. You can pay fractions of points, meaning
there are a lot of points packages that can make a
loan's terms more favorable if that's what's right
for you. (Mortgage
Calculators)
There are a variety
of rate and point combinations available. When you
look at different loan programs, don't look just at
the rate -- compare the whole package. Federal law
requires lenders to publish their loans' Annual Percentage
Rate, or A.P.R.
The A.P.R. is a tool used to compare different terms,
offered rates, and points.
JRD Global Mortgage 1514 1/2 E. 8th Ave 2nd Floor
Tampa, FL 33605
Phone: (813)
319-3923
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