| Loan Amount: |
Money borrowed that is usually repaid with interest to purchase property. |
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| Length of Loan: |
The number of years required to pay off the principal and interest of the loan. |
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| Interest Rate without Points: |
No interest charges are paid up front when the borrower closes the loan. The interest charges are included in the loan amount (e.g. If the charges are 1 point, the $100,000 mortgage would become $101,000). With a higher loan amount, the monthly payments will be higher. |
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| Interest Rate with Points: |
Interest Charges paid up-front when a borrower closes a loan. A point is equal to 1 percent of the loan amount (e.g. 1.5 points on a $100,000 mortgage would cost the borrower $1,500). By paying more points at closing, the borrower reduces the interest rate of his loan and thus future monthly payments. |
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| Points: |
A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent (e.g. If the charges are 1 point on a $100,000 loan, the fee would be $1,000). |
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| Annual Savings Rate: |
The rate of interest you would have earned if you invested your money in an one year bank term deposit. |
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