Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

When I call around for mortgage rates I often hear the word “points”. What are they?

hear mortgage rates Points word
0
Posted

When I call around for mortgage rates I often hear the word “points”. What are they?

0

A point is pre-paid interest and each point is equal to 1% of the amount you borrow. For instance, if you borrow $100,000 with one point, the point will be equal to $1,000. Generally, points are paid at closing. Paying points up-front normally allows you to obtain a lower interest rate.

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.

Experts123