Or,  Why a No Points Mortgage Loan does Not mean it was Free??

You should Start by asking yourself one simple, but Key Question:  Do I plan on keeping this mortgage loan for a while? Am I likely to Own this property for at least the next 3, 5 or more years? If you answered Yes - Then it may make sense to "buy down" to a lower interest rate by paying one or more "points to achieve the lower rate and payments".

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 goal to find you the right loan for your means and future.

A point -- which equals one percent (1%) of the total loan amount -- is an up-front fee that lowers your annual interest rate and total interest due over the life of your 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.

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.

Talk with a Pinnacle Mortgage Counselor today, to find out "what is Best for YOU"!  No obligation and the call is Free  

(800) 564-1500 

or if you a ready to get started, click here  and be Pre-Approved in Minutes!