Mortgage Points

Disclaimer: This website provides general mortgage and financial information for educational purposes only. It does not constitute financial, legal, or mortgage advice. Housentia is not a licensed mortgage broker, lender, or loan originator.

This content is provided for general educational purposes only and does not constitute financial or mortgage advice.

Definition

Fees paid at closing in exchange for a lower interest rate. One point typically equals 1% of the loan amount.

Explanation

Buying points can reduce your rate and monthly payment. Whether it pays off depends on how long you keep the loan.

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