Q. I don't understand the concept of discount points. How do they work and who pays
for them?
A. One discount point is equal to 1% of the loan amount in dollars. This "buy down"
can mean a lower rate of interest on your mortgage loan. Discount points could be
required for certain types of loan products. Some lenders will combine or interchange
discount points and a loan origination fee to achieve a lower interest rate or meet the
criteria for a certain loan program. A buyer or a seller can pay discount points.
Discount points should be negotiated in the financing section of your sales contract.
For further information contact a mortgage company, bank or credit union.
Q. I am renting a home in the Killeen area and know that I will be here another three
years. Would it be good for me to buy or should I continue to rent?
A. Only you can make the decision to buy or continue renting. A survey conducted by
the National Association of Realtors of 6,000 homeowners and 2,000 renters revealed
the following reasons for buying: pride of ownership, dislike paying rent, investment,
tax savings, long-term appreciation and control over lifestyle. More than three-quarters of
renters interviewed said they would be willing to make sacrifices to buy.
TIPS
• Pre-qualify with a lender and obtain a
“Commitment for Loan Approval.”
E-mail or write questions on
real estate / builders to:
This email address is being protected from spam bots, you need Javascript enabled to view it
606 S. 2nd St.
Copperas Cove 76522 ask Nancy
Nancy Sisco-Carothers
Builder/Realtor®
Santa Fe Designs
Realty Executives
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