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What are points or discount points in the mortgage process?
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- Опубліковано 19 сер 2024
- What are points or discount points in the mortgage process?
When you start researching mortgages, you'll come across terms like points, discount points, or buying down the rate. They all mean the same thing: lowering your interest rate by paying extra money at closing.
For example, if today's free interest rate is 7.5%, you can pay a few thousand dollars at closing to reduce it to 7.25%. This one-time fee is part of your closing costs. Remember, it's crucial to compare not just the interest rate but also the points when reviewing loan estimates from lenders. This ensures you're comparing apples to apples.
If you have any questions, definitely reach out! 📞💬
#TylerTheHomeLoanGuy #MortgageTips #HomeBuying #InterestRates #DiscountPoints #RealEstate
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