Central Vermont Real Estate, The Point of Points

buying Central Vermont real estateThose buying or refinancing Central Vermont real estate may want to know if there is a point to points.  In fact there is, points are a mortgage term that come in two forms, “origination points” and “discount points”.  Origination points are involved in most closings for Central Vermont real estate and cover the lender’s costs for issuing the loan.

Home buyers pay for discount points in order to reduce their monthly mortgage payments.  One point is equal to one percent of the loan value and can reduce the overall interest rate of the loan by 1/8 of a percent per point purchased.  In effect paying for points is paying interest up front.

When buying Central Vermont real estate a home buyer might wonder whether or not buying points is a wise idea.  If the main goal is a reduction in monthly payments, then paying for points up front can be a great idea.  On the flip side paying for points can be tough if it is taking away from money that you have set aside for a down payment.  Another consideration is how much the points cost and how quickly the monthly savings would recoup that upfront cost.

The financial aspect of buying Central Vermont real estate can be confusing.  A Central Vermont REALTOR® can clarify terms and educate a home buyer on the buying process.  Contact us today to have access to all Central Vermont properties that are currently listed for sale.

Click here to learn more about mortgage points from BankRate.com.

BCK Real Estate is the home of Vermont Real Estate. Click here for free access to the Vermont MLS. We represent buyers and sellers of Vermont Real Estate, specializing in Montpelier, Barre, Northfield, Rochester, Stowe and Waterbury. This blog is brought to you by Kevin Copeland, a BCK broker from our Barre office that can handle all of your buying and selling needs.

A native Vermonter, Kevin Copeland offers exceptional service to anyone searching for real estate in Central Vermont. Based out of BCK’s Barre VT real estate office, Kevin can help with all of your Central VT real estate needs.  Kevin knows Central Vermont and is known for his commitment, professionalism and service, as well as his ability to help you with all of your Central Vermont real estate needs.

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