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One Mortgage point is equal to one percent of the loan amount. For example, on a $100,000 mortgage $1,000 would be equal to one point. Understanding what points are and how they work can save you thousands of dollars on your mortgage. Borrowers can pay mortgage points to reduce the interest rate charged on their mortgage.

She recommends that you apply a portion of the 20% designated for savings toward debt repayment and consider how you could reduce. the price of the home you could afford would fall to about.

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will help maintain liquidity in the mortgage market,” he said. While the changes are a “step in the right direction,” lenders could see more audits in the near future as the system ramps up, said Tim.

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