What is buying down points on a mortgage?

Answer When you apply for a mortgage loan you may have to pay points. Once the bank determines your interest rate you can have your rate lowered by purchasing discount points. Paying points is called buyi... Read More »

Top Q&A For: What is buying down points on a mortgage

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 Influences People When Buying a Mortgage?

Buying a mortgage is a very important financial step for individuals -- few people create a larger single debt than a primary mortgage to purchase a house. These also tend to be the debts that can ... 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 »