How to Calculate the Best Mortgage Deal
Foreclosures are soaring and millions of ordinary people are struggling to pay their mortgages; subprime mortgages accounted for almost 1.3 million home foreclosures in 2007, up 79% from 2006.
One way to avoid joining that statistic is to understand the mortgage “point” system when you shop for quotes. The system sounds confusing at first, but is relatively simple. One mortgage point equals 1% of the overall loan, meaning a single point on a $100,000 loan equals a payment of $1,000.