What do points mean on a mortgage rate?

Answer 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 »

Top Q&A For: What do points mean on a mortgage rate

Should you pay mortgage points to lower your rate?

On One Hand: Lower Interest RateWhen you pay points, the interest rate on your loan is reduced. Each point typically costs 1 percent of your mortgage and reduces your interest rate by about 0.25 pe... Read More »

Should I Buy Points to Lower My Mortgage Interest Rate?

401k retirement plans are investment programs, typically set up by an employer, where pre-tax dollars can be contributed by an employee. In some cases, employers match an employee's contribution e... Read More »

How many points can be purchased to lower a mortgage rate?

According to the Federal Trade Commission, the number of mortgage points available for purchase varies from one lender to another. The cost of one point is 1 percent of the principle amount of the ... Read More »

Mortgage Points Versus Rate Payback?

When a mortgage originator closes a new loan, typically both the borrower and the lender pay the originator thousands of dollars (each pays roughly half of this total). Additional points (one poin... Read More »