Mortgage Factors

If you understand the interest rates, you should know a few things about the basic principles of money lending and loan.

Not only are there interest rates to deal with, but there are other fees that affect your overall costs, and very few standards to regulate them. One of these things is the "point."

In the simplest sense, a buydown is a way to buy a lower interest rate for a certain amount of time - and thus reduce monthly payments.

Timing is important to do this right. In a sense, it is a bet on both sides - the borrower bets that interest rates will rise after a certain point, and the lender bets that they will drop at some point.