In many parts of the country, homeowners are faced with mortgages that are above their home’s actual value. This is due to the mortgage crisis that has been gripping the nation for four years now. Austin has been spared a dramatic impact thus far, as home values have not reduced here as much as in other cities. Many who are in the market for a new home are looking to take advantage of the lower mortgage rates created by the crisis. It is important to understand, however, that there are fees associated with any loan, and they have not decreased at all. A mortgage point is equal to 1% of the total loan. When lenders offer a mortgage loan, they will generally provide both the dollar amount and the point amount. Fees will usually be at least one point, and perhaps more. During the mortgage crisis, these fees have nearly doubled from .4 points to .7 points. It is also important to know that paying more points up front can reduce the interest rate on the loan. There are also discounts available for those who are able to pay more points. As a result of the current real estate market, it has become much harder to secure a loan. Lenders are looking much more closely now at credit scores and ability to repay before approving any loans to avoid a default down the road. For those who are able to secure a mortgage loan these days, it is very important to be aware of all fees and points involved. The Federal Bailout Plan did include the stipulation that lenders need to provide all of this information, so be sure to ask about everything.