| Origination Fee |
Website Links For Point |
Information AboutOrigination Fee |
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A point, sometimes also called an "origination fee" or a "discount point", is a fee for establishing a new Loan . It is one of the important factors in the calculation of the Annual Percentage Rate for a Mortgage . One point is one percent of the loan amount. The fee usually varies from 0.5% (half a point) to 2% (two points) of the loan amount, depending whether the loan was originated in the Prime or the Subprime market. An origination fee of 2% on a $200,000 loan is $4,000. In some cases, one has to pay points plus origination fees. If for a $100,000 loan, the {Link without Title} points are 1.5, then one pays $1,500 in points because . |
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