Comparison DMV Listings Real Estate Glossary Mortgage Calculator Salary Calculator Refinancing Estimator Crime Rate Info. Register to Vote Neighborhood Info. Whether called points, discount points, loan brokerage fee, or new loan fee, they are all the same.
Points provide the magic behind a large number of home sales.
So, since points are such a vital part of selling in today's market, an understanding of them is important. Points are the money that is paid to the lender, allowing the lender to make loans at a regulated, lower than market interest rate and still obtain the desired rate of return. In order to allow more people to buy their own home, the U.S. government established the FHA and VA loan programs. The VA program was established to assist our war veterans, and later all veterans, by eliminating the required down payment. The FHA program was developed to assist low to medium income families to purchase a home by reducing the required down payment.