Points, APRs, and Other Homebuyer Fees
WHAT ARE POINTS? Points are fees your lender charges, usually 1 or 2 percent of the total loan amount. It's important to factor in points when shopping for mortgages as a loan with a higher interest rate and no points could ultimately be cheaper than a lower interest rate with points. It’s also possible to negotiate that the seller pays points.
What Is an Escrow Account?
You're going to hear the word "escrow" a lot when you're buying a home, whether it's someone referring to an "escrow" account orgoing into escrow.