Home Mortgage Interest Rates

Celz asked:

I really don’t know much about mortgages and I appreciate you guys helping me out with my question but I have another one. When you guys refer to points and how many points I want to pay what does that mean? I dont know what points are and how they work so can you guys pls help with this?

Also, what is a good amount of liquid assets to have when purchasing a $150,000 home? Must you need liquid assets or is it not necessary? is $20,000 Okay? We make about $75,000 yearly probably a little more, we will put down 5%, my credit history is okay I have a few late charges from a few months back but for the past half a year I have made all payments on time and actually just bought a new car. We pay $1250 a month for rent and figure that we should rather buy a single family home and spend $1250 on a mortgage instead of spending so much money renting. thanks for the replies…..