(415) 390-6750   
(415) 390-6750   
 
 
 

Paying Points for a Lower Rate

In refinancing, a mortgage company usually offers a range of interest rates at different amounts of points. A point equals one percent of the loan amount. For example, three points on a $100,000 mortgage loan would add $3,000 to the refinancing charges.

Analyzing various interest rates and associated points may save you money. As a rule of thumb, each point adds about one eighth to one quarter of one percent to the interest rate the mortgage company is offering.

Generally, the lower the interest rate on the loan, the more points the lending institution will charge. Some companies offer refinancing with no points, but generally charge higher interest rates.

To decide what combination of rate and points is best for you, balance the amount you can pay up front with the amount you can pay monthly. The less time that you keep the loan, the more expensive points become. If you plan to stay in your house for a long time, then it may be worthwhile to pay additional points to obtain a lower interest rate.

Some companies may offer to finance the points so that you do not have to pay them up front. This means that the points will be added to your loan balance, and you will pay a finance charge on them. Although this may enable you to get the financing, it also will increase the amount of your monthly payments.

We offer a variety of real estate financing options for various property types.

Financing Options:

  • Fixed/Term
  • Adjustable
  • Bridge Loans
  • Construction/Rehab
  • Home Equity Line
  • CRE Line of Credit
  • Mezzanine Loans
  • SBA Loans

Property Types:

  • Apartments (5+ Units)
  • Hotel/Motel
  • Industrial
  • Mini-Storage
  • Land
  • Mobile Home Parks
  • Senior Housing
  • Student Housing
  • Mixed-Use
  • Office
  • Owner-Occupied
  • 1-4 Residential
  • Retail
  • Shopping Centers
  • Single-Tenant  

Sources of Capital:

  • Life Insurance Companies
  • Wall Street Investment Banks
  • Regional & Local Banks
  • Agency Loans
  • Credit Unions
  • Private Money

We offer a variety of real estate financing options for various property types.

Financing Options:

  • Fixed/Term
  • Adjustable
  • Bridge Loans
  • Construction/Rehab
  • Home Equity Line
  • CRE Line of Credit
  • Mezzanine Loans
  • SBA Loans

Property Types:

  • Apartments (5+ Units)
  • Hotel/Motel
  • Industrial
  • Mini-Storage
  • Land
  • Mobile Home Parks
  • Senior Housing
  • Student Housing
  • Mixed-Use
  • Office
  • Owner-Occupied
  • 1-4 Residential
  • Retail
  • Shopping Centers
  • Single-Tenant  

Sources of Capital:

  • Life Insurance Companies
  • Wall Street Investment Banks
  • Regional & Local Banks
  • Agency Loans
  • Credit Unions
  • Private Money

Pacific Financial Group, Four Embarcadero Center, Suite 1400, San Francisco, CA 94111 
  T: (415) 390-6750 | F: (888) 988-9434  |  info@pacfigroup.com

  Pacific Financial Group, All Rights Reserved.



 
 

CA Insurance license Samuel A. Shummon #0I49823.
Real Estate Broker – CA Bureau of Real Estate – Cal BRE #0129501 – NMLS #328979
Pacific Bay Lending, Inc.  – CA Bureau of Real Estate – Cal BRE #01874818 – NMLS #318011
www.nmlsconsumeraccess.org

 Made in the U.S.A. | Privacy Statement



Equal Fair Housing

Pacific Financial Group, Four Embarcadero Center, Suite 1400, San Francisco, CA 94111 
  T: (415) 390-6750 | F: (888) 988-9434  |  info@pacfigroup.com

  Pacific Financial Group, All Rights Reserved.



 
 

CA Insurance license Samuel A. Shummon #0I49823.
Real Estate Broker – CA Bureau of Real Estate – Cal BRE #0129501 – NMLS #328979
Pacific Bay Lending, Inc.  – CA Bureau of Real Estate – Cal BRE #01874818 – NMLS #318011
www.nmlsconsumeraccess.org

 Made in the U.S.A. | Privacy Statement



Equal Fair Housing