Loan
Costs
Many
companies will charge a fee for lending you
money. The fee is usually a percentage of
the loan and is sometimes referred to as "points."
One point is equal to one percent of the amount
you borrow. For example, if you were to borrow
$10,000 with a fee of eight points, you would
pay $800 in "points." The number of points
mortgage companies charge varies, so it may
be worthwhile to shop around. If the fee seems
too high, you may be able to bargain for or
find a lower fee. Be sure to get the amount
of the fee in writing before you take the
loan. Many states limit the amount of fees
a mortgage company may charge on a second
mortgage loan. You may want to check with
your state's consumer protection office or
banking commissioner to determine whether
there is a limit in your state.
