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Each point equals 1% of the loan amount. But if they do, hopefully the broker's appraiser didn't also overstate the value of the home, and they should get a fair amount back. If your CLTV ratio is more than 80 percent, don't be shocked if the rate for your second mortgage is 3 to 7 percent higher than a conventional 15-year first mortgage. The result in the long term would be less confidence in monetary policy, higher interest rates and lower investment and employment levels. 
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