What is one point in a mortgage?

Answer When purchasing a home, a borrower can pay one point to save money on the monthly mortgage payment. It is important to understand what a point is and the benefits.DefinitionPaying one point on a mo... Read More »

Top Q&A For: What is one point in a mortgage

What is a mortgage discount point?

Mortgage points are a cost paid when you close your mortgage. The more points you pay the lower your interest rate will be.SizeEach mortgage discount point costs 1 percent of the loan. For example,... Read More »

What is a mortgage loan point?

There are two types of points associated with a mortgage transaction: a discount point and an origination point. Both points are a fee charged to the borrower for a service at the closing of the tr... Read More »

What is 1 point regarding mortgage rates?

Mortgage points represent charges assessed at the closing of the mortgage that are charged by the lender. You must pay origination points while you can choose how many discount points to pay.CostOn... Read More »

What Difference Does a Tenth of a Point Make for a 30 Year Fixed Mortgage?

One-tenth of a percentage point can mean the difference between thousands of dollars over a 30-year fixed mortgage. Using the U.S. Census Bureau's median home price of $216,700, you can save close ... Read More »