Updated almost 5 years ago on . Most recent reply
How does loan amount impact loan points charged?
Hello All!
I'm looking for some insight into how a change in the loan amount impacts the loan point %. I am in the process of doing a cash out refi on an investment property. In the process of refinancing and after the rate was locked, the loan points increased .81% between the original estimate and the latest estimate. Here are events that have occurred during this refinance:
- Original estimate was based on a loan amount of $101k. The final loan amount went down to $78k.
- Rate lock extended from 30 to 50 days.
- Credit score did not change
- LTV of 75% did not change
Would any of these events trigger an increase in the loan points charged?