This percentage may vary, depending on where you live. Your mortgage professional will give you a more exact estimate of your closing costs.
Points are finance charges that are calculated at closing.
The more points you pay, the lower your interest rate will be. In some cases, you may be able to finance the points. There are two basic formulas commonly used to determine how much of a mortgage you can reasonably afford. These formulas are called qualifying ratios because they estimate the amount of money you should spend on mortgage payments in relation to your income and other expenses. There are many affordability programs, both government and conventional, that have more lenient requirements for low and moderate income families.