Tag Archive for: paying mortgage points

How Mortgage Points Work

The purchase of a home is often the biggest investment someone makes in their life. With this being such a large financial decision, home buyers must know all the tools at their disposal that can impact their monthly expenses. It’s for that reason that it’s so surprising that many borrowers aren’t aware of the ways they can lower their interest rate with mortgage points!Read More

Is Paying Mortgage Points Worth It?

What are mortgage points? And is paying mortgage points worth it? A “point”— formally referred to as a “discount point”— costs the borrower one percent of the loan amount. Mortgage lenders typically refer to this as “buying down your rate.” For example, one point on a $500,000 loan is $5,000. The point is a fee typically paid at the beginning of the loan in most cases and it is up to you as to whether you opt to pay for discount points.Read More