Are mortgage points good or bad?

Answer On One Hand: A Lower Rate Helps the BorrowerPoints are a fee charged to a borrower to purchase an interest rate lower than the current rate offered. These points allow a borrower to be "in charge" ... Read More »

Top Q&A For: Are mortgage points good or bad

What exactly does it mean to"buy down points"on a mortgage?

A point is a fee paid in order to obtain a mortgage for a home. The term "buying down" points refers to paying more money up front in order to bring down the interest rate and monthly payments. In ... Read More »

What does it mean to add points to your mortgage?

Adding points to your mortgage means paying a sum of money to your lender or mortgage broker in order to lower the interest rate of the loan. One point is generally equal to 1 percent of the total ... Read More »

With a mortgage, what are points?

Points are an up-front fee you pay for obtaining a mortgage. 1 point equals 1% of the loan value. So a $200,000 mortgage with 2 points, means you have to pay $4,000. That is in addition to other... Read More »

What do points mean on a mortgage rate?

Points are a closing cost paid to reduce the interest rate on the loan. When you pay points, you pay a larger cost at closing but lower interest rates over the life of the loan.CostsEvery point tha... Read More »