What's the difference between points and interest? Jordan Brewer
Interest and points are both calculated as a percentage of the loan amount, but there is a difference.
POINTS - This is how we make our money. Points (sometimes called origination fees) are a flat percentage fee that is the same amount no matter how long the term of the loan is for, so if you pay off the loan early or right on time, the points remain the same. Our points are 6.5% or 5.5% if your credit score is 680 or above.
INTEREST - This is how our financial investor (the person that actually funds your loan) make money. Interest is a cost that is a percentage of the loan tied to a specific time period. Our interest rates are 1.50% per month or 1.25% per month if your credit score is 680 or higher.