Point

Today’s real estate word of the day is going to be point, Shana is going to go ahead and define that word for us and we’re going to use it in a sentence short to go ahead and mortgages.

A point is one percent of the loan amount. It may also be referred to as 100 hundred BP or bips.

All right. So that’s a common word there in the mortgage industry is a point one percent. So somebody might say that we have a one percent origination fee or one point origination that would be one percent. And then you might also hear them refer to it as a bit so they could buy a rate down and it might be 50 bips lower or it might cost 10 bips. And what that is, is a basis point.

So it’s a hundredth of what it is. And you go over there and there’s one hundred bips per one percent. So Abib is one one hundredth of a percent or a BP. That’s real estate, where the day that Shauna, thanks a lot for that one, Shana.

Episode Links

Shana, real estate word of the day , Acquisto Real Estate, TNT

Episode Recorded Live on YouTube 8.18.21

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