The True Cost of Loan Points

Byron Allen President of American Life Financial explains why every lender charges points and how American Life Financial is different.

Opening: "I'm Laura Munoz and welcome to Let's Talk Commercial Real Estate a newly created video blog covering topics of interest for commercial brokers and borrowers sponsored by American Life Financial. We'll be chatting with members of the real estate community asking them questions that you use submit on social media."

Laura Munoz: "I'm Laura - welcome to let's talk commercial real estate. We have Byron Allen in the house (shouts).

Byron Allen: "Woot woot"

Laura Munoz: "Byron (laughs), welcome back."

Byron Allen: "Thank you, thank you, glad to be back"

Laura Munoz: "We had a question that was asked about three or four times so I think we need to review these points you said you guys differ and you offer maybe a more attractive package to the customer. So, what are the fees? What are the points? Maybe you can talk about that. What happens in the industry in general and how you provide.

Byron Allen: "Sure yeah well as I mentioned one of the differentiating factors is that our loans are typically five years or longer and so what the advantage of that is is every lender charges points upfront that kind of pays to keep the lights on in the house. But when you have a short-term loan you're paying those points over and over and over when you have a longer-term loan you can kind of spread those points out over those years so per year those points are much less expensive so that's of one of the big differentiators that that we can offer.

Laura Munoz: "Okay great."

Closing: "Have topics or questions you'd like covered on let's talk commercial real estate? Or if you'd like to be a guest on Let's Talk Commercial Real Estate, please contact us at letstalk@notsohardmoney.com. Like us, follow us and share us on social media."