Points A point is a fee equal to 1% of the loan amount. A 30-year, $150,000 mortgage might have a rate of 4% percent, but come with a charge of 1 point, or $1,500. A lender may charge 1 or more points. There are two kinds of points: discount points and origination points. Think of discount points as pre-paid interest, which helps the borrower. … [Read more...]
What is a VA Funding Fee?
I am often asked what is a VA funding fee? A VA funding fee is just like an insurance policy for the lender that loans the money for the home. The VA 'guarantees' the lender against default. So if something goes wrong and the homeowner can no longer make the payments, the lender will be covered for any loss by the VA. Unfortunately just like … [Read more...]
What is a VA Mortgage?
A VA loan is an amazing program that is eligible only to those who have been honorably discharged in the military or who are still active duty. In order to be on a VA loan you must either be a veteran, or married to a veteran. VA loans require NO money down up to the maximum $477,000 in San Diego County and $621,000 in Los Angeles and Orange … [Read more...]
