October 3rd, 2011
October 3rd, 2011
Add-ons? What are those?
Mortgage Add-ons? What are those? Most people are not aware that Fannie Mae and Freddie Mac have a whole chart of pricing “add-ons”. Add-ons are an amount usually expressed in discount points. These points are added on to the “base rate” in certain situations. Each 1.00 point is 1.00% of the loan amount. Another example is that a .25 point is a .25% of the loan amount. On a $400,000 loan a .25% point is $1,000.
