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    , this is not the way mortgages work. You can use points as a bargaining chip when negotiating with a lender. You should always get something in exchange for paying points. If the lender is requiring that you pay point
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    If you are in the process of refinancing your mortgage you need to do your homework to avoid overpaying for your new mortgage. Doing your homework means learning the basics of how a mortgage loan works. Here is a primer on basic mortgage terminology.

    Mortgage Lender Fees

    All mortgage loans have lender fees. Lender fees include application fees, credit report fees, and appraisal fees, survey fees, other processing fees, and closing costs. Mortgage lenders also like to hide fees in the fine print of their loan contracts. Make sure you carefully review the good faith estimate provided by the lender as this will include all fees along with the Annual Percentage Rate for the loan.

    Points

    Many lenders charge points for the “privilege” of borrowing. If you have good credit the lender should be paying you for the privilege of your business; however, this is not the way mortgages work. You can use points as a bargaining chip when negotiating with a lender. You should always get something in exchange for paying points. If the lender is requiring that you pay points

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    r on basic mortgage terminology.

    Mortgage Lender Fees

    All mortgage loans have lender fees. Lender fees include application fees, credit report fees, and appraisal fees, survey fees, other processing fees, and closing costs. Mortgage lenders also like to hide fees in the fine print of their loan contracts. Make sure you carefully review the good faith estimate provided by the lender as this will include all fees along with the Annual Percentage Rate for the loan.

    Points

    Many lenders charge points for the “privilege” of borrowing. If you have good credit the lender should be paying you for the privilege of your business; however, this is not the way mortgages work. You can use points as a bargaining chip when negotiating with a lender. You should always get something in exchange for paying points. If the lender is requiring that you pay point

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    d closing costs. Mortgage lenders also like to hide fees in the fine print of their loan contracts. Make sure you carefully review the good faith estimate provided by the lender as this will include all fees along with the Annual Percentage Rate for the loan.

    Points

    Many lenders charge points for the “privilege” of borrowing. If you have good credit the lender should be paying you for the privilege of your business; however, this is not the way mortgages work. You can use points as a bargaining chip when negotiating with a lender. You should always get something in exchange for paying points. If the lender is requiring that you pay point

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    he Annual Percentage Rate for the loan.

    Points

    Many lenders charge points for the “privilege” of borrowing. If you have good credit the lender should be paying you for the privilege of your business; however, this is not the way mortgages work. You can use points as a bargaining chip when negotiating with a lender. You should always get something in exchange for paying points. If the lender is requiring that you pay point

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    , this is not the way mortgages work. You can use points as a bargaining chip when negotiating with a lender. You should always get something in exchange for paying points. If the lender is requiring that you pay points in order to qualify, find a different lender.

    Mortgage Term Length

    The term length of your mortgage is simply the amount of time the lender grants you to pay back the loan. Mortgage term length largely determines your monthly payment amount and puts a dollar amount to the interest rate you are paying. Common term lengths include thirty years, fifteen years, ten years, and five years. The longer the term length you select, the lower your monthly payment will be. This is because repayment of the principal balance is spread out over a longer period of time. The monthly mortgage payment may be lower with a longer term; however, these loans are more expensive as you will pay more to the lender in interest over the life of the mortgage.

    Prepayment Penalty

    Make sure your new mortgage does not include a prepayment penalty. The average homeowner r

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