Mortgage Points

Welcome to Mortgage Points. Our site offers a simplified definition of Mortgage Points and breaks out when you should or should not consider buying Mortgage Points for financing a home. Mortgage Points are not for everyone and a number of factors may be considered in assessing if Mortgage Points are right for you.

What are Mortgage Points?
A mortgage point is an opportunity for you to pay some of your mortgage interest up front. If you purchase mortgage points your interest rate will drop and stay lower throughout the life of the loan. A mortgage point costs one percent (1%) of the mortgage amount.

A mortgage point is also called a "discount point."

 

What You Should Consider...
Do you have enough money to pay for mortgage points up front?
If you are low on cash, it may be in your best interest to forgo buying mortgage points.

 

How long will you need to keep the mortgage in order to reap the benefits?
It will often take a few years before you realize the value of buying mortgage points. However, points purchased up front can often equate to thousands of dollars saved.

 

A mortgage point calculator can help you determine whether or not buying points is a good idea for you. Click here to use the MortgagePoints.com Mortgage Points Calculator. Your bank can provide you with the revised interest rate percentage through purchasing mortgage points. Not all banks offer the same terms.

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