Getting an FHA Loan

The people at FHALoan.com specialize in getting FHA mortgage loans for our customers. We offer a full menu of FHA mortgage products focused on meeting your home financing needs. Our free pre-approvals give you the comfort you need to shop for your home with confidence. We make getting loans fast, easy and convenient.

Our mortgage partner is a publicly traded corporation that is a direct lender and approved by the Federal Housing Administration in all 50 states.

FHA LOAN QUESTION # 7   [ -more FHA questions- ]

Q: What are discount points?

A: Discount points allow you to lower your interest rate. They are essentially prepaid interest, With each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases With each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.