What it means to “pay a point”.
We’re back to cover another common real estate term that may be confusing to some. When buyers are applying for mortgages, the term “point” often comes up (ex. “I can get you a better rate if you pay a point.”).
Simply, a point refers to 1% of the loan’s total value. On a $100,000 loan, $1,000 is one point. It’s nothing mysterious, but a lot of people outside of the industry just don’t know the definition. Now you do!
If you have questions for us about this or any other real estate-related topic, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.