Points, or loan origination fees or discount points, are charges that lenders add to your loan to entice potential market investors.  

	1 point = 1% of your loan amount
	A low interest rate with high points can be a deceptively expensive propositions
	A high interest rate with low points is often the smart choice
	If you choose to pay your points up front, they're tax deductible in the year you pay them

Here are a few hints to help you avoid these "fine print" charges: 

	Read all forms carefully, and always ask about lender's fees right up front
	Remember that lender's fees are nt the same as closing costs
	Be ready to be charged for application, document preparation, underwriting, tax work, and document review
	Bear in mind that some lenders bundle their fees at one flat rate, buy many charge separately

There is a fairly simple way to effectively compare loan costs.  It's called the Annual Percentage Rate. Here's how it works: 

	The APR combines the regular interest rate, points, and other incidental charges
	The APR is calculated by dividing these charges by the terms of the loan for a flat annual rate
	Even a loan with a low APR will contain certain lender's fees
	For more information on APRs, please call, or send me an e-mail.

It comes as a happy surprise to many that they can often get a terrific home loan and still pay less than the standard 20% down.  In most cases, these buyers will need to purchase Private Mortgage Insurance. Here are a few basics: 

	PMI protects the lender against loan default
	You may be able to include your first year's PMI premium in the amount of the loan
	In some cases, you may be able to use part of your loan to cover certain closing costs
	Though PMI has many things in its favor, it can also reduce your qualifying loan amount and limit your purchasing options

Make sure your lender has the proper endorsements. Here are a couple of points to remember: 

	A DVA automatic or FHA direct endorsement meant that your lender has met all government requirements, and that their underwriter has completed all mandatory courses
	You can trust a properly endorsed lender just as if you were taking your application directly to an FHA or DVA office

When you find an interest rate you're happy with, it is crucial to secure that rate for the duration of the transaction. Here's how it works: 

	Many lenders will be happy to lock an interest rate for you
	Fees for a lock-in are generally between 0-1% of the loan amount
	The length of a lock-in varies from lender to lender
	Make sure that your lock-in agreement is in writing, and that it lists both interest rate and points if applicable

Find out up front if there are any penalties.  Pre-payment can be to your advantage if you're planning to resell or refinance. However notify your lender of your intent in writing.

Take a good look at these pointers, if you need any help please call, or send me an e-mail., for the names of respected lenders with proven track records of results. 

	Before you choose, ask people you trust if they know of any reliable lenders
	Processing times vary between lenders; by making a few phone calls you can find one who meets your time constraints
	Know your lender's policies before you commit to working with them
	If you've already chosen a lender you don't like, change