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. Your bank can provide you with the revised interest rate percentage through purchasing mortgage points. Not all banks offer the same terms.

Mid-Day Recap: Labor Reports Send Markets into Freefall - The pace of losses in the labor market had been moderating for four months but in June nearly half a million jobs vanished from the economy, in contract to widespread expectations. The Bureau of Labor Statistics said 467,000 jobs were lost, pushing the unemployment rate to 9.5%, the highest in 26 years. ?The heavy loss of jobs in June is a warning that the road to recovery will be bumpy, but doesn't yet indicate that we have gone off the track? . . . ...(read more)

The Day Ahead: Markets Hesitant Ahead of Employment Data - Markets are edging lower ahead of the 8:30 release of Nonfarm Payrolls. A lot is hanging on this report as many forecasts for the economy are dependent on the direction of the labor market. Many look for signs of stabilization after last month?s downside surprise, but signs of a recovery have been far from evident in the weekly Jobless Claims numbers or the ADP private employment report. The consensus looks for 325,000 jobs to have vanished this month, with forecasts ranging between 225,000 and 435,00...(read more)