A Guide to Mortgage Points
Purchasing mortgage points can save homebuyers thousands of dollars. But it's important to understand the risks and benefits of this money-saving strategy before making a commitment. Also known as discount points, these upfront fees reduce your interest rate, resulting in a lower monthly mortgage payment. Here are some things you should know about mortgage points before purchasing them. They Lower Your Interest Rate Mortgage points, also known as discount points, are a form of pre-paid interest that reduce the mortgage rate and monthly payments on a home loan. These upfront fees are typically payable at the closing of a home purchase and can save borrowers tens, or even hundreds, of thousands of dollars over the life of a 30-year mortgage. However, the decision to pay for mortgage points should be…









