Many of the subprime loans that helped fuel the housing boom – those that didn’t require borrowers to show any proof of income, or that let homeowners make minimum payments – are are simply no longer available. But even buyers looking for a traditional mortgage are now faced with different factors to consider.

Borrowers can pay points – one-time, up-front fees – in order to reduce their mortgage’s interest rate over the life of the loan. One point represents 1% of the mortgage value. But they often assume that they should never pay points, according to Alan Rosenbaum, founder of mortgage broker Guardhill Financial. That’s a mistake, in his opinion. When interest rates were high, paying points didn’t make sense because borrowers were very likely to refinance after rates dropped. They wouldn’t hold their original loans long enough to recoup their up-front costs.

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