TeachMeFinance.com - explain point
Points -- are fees paid to the
lender for the loan. One point equals 1 percent of the loan amount. Points are usually
paid in cash at closing. In some cases, the money needed to pay points can be borrowed,
but doing so will increase the loan amount and the total costs.
point -- an amount equal to one percent of the principal amount of an investment or a loan. Points are a one time charge assessed at closing by the lender to increase the lender's earnings on mortgage loans.
Point -- In stocks a point is I per cent; in cotton and coffee one-hundredth of a cent. Also, as a Wall Street colloquialism, a point is advance information or a suggestion of supposed value ; same as tip, which is another colloquialism.
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