Mortgage Origination Points

Especially if you are a first time home buyer you may be sitting there, reading this, and thinking to yourself….”Mortgage points? Who’s keeping score?” Well hopefully this will clear it all up for you!

To start with let’s explain what a mortgage point is and don’t worry…it’s not that complicated. A mortgage point is a fee based on one percent of the total mortgage. So if your mortgage amount was $100,000 then each point would be valued at $1,000. There are two different types of points though.

Origination Points are used to pay for the costs of getting the loan in the first place. Typically it is a fee to compensate the lender or loan officer for evaluating, processing, and approving the loan. Origination points are also not tax deductible.

In the next post we will be talking about Discount/Closing Points. Until then…check us out below!

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2 responses to this post.

  1. Great information. Thanks!


  2. This post is not so long and you have nicely described that what is Originate points and I think that you could describe in this post that what is discount points.


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