are the points in a mortgage already included in the cost or is it a tax that you pay the bank separately?

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as if the acquisition costs of 3% points and youre ready are 1.25 is 1.25% from 3?

2 Comments
  1. Reply
    Dale H
    May 2, 2011 at 4:00 am

    Get a Good Faith Estimate. It will detail the loan charges and also provide a total. All fees associated with the loan should be disclosed on the GFE.

  2. Reply
    Estrella
    May 2, 2011 at 4:41 am

    Points are part of the closing costs. Closing costs include many different costs that go to different parties. So yes, the point will be included in the closing costs. But, that doesn’t mean that the closing costs will remain at 3%. 3% might be what the lender/broker usually sees charged at closing. But if you’re buying points, in this case it was 1.25 which is the same thing as 1.25%, they you will be paying 4.5% of closing costs.

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