The Real Estate Encyclopedia
When Should I Pay Discount Points?
Category - Mortgage Questions - Mortgage Loans FAQ's

When you pay a discount point, you are essentially paying part of your interest to the lender up front. This will lower your interest rate - as well as your monthly payment over the life of the loan. One discount point is typically equal to 1% of the loan amount. For example, one point on a $100,000 loan would require payment of $1,000 at closing. Generally speaking, the longer you plan to remain in a property or hold your mortgage, the more advantageous it is to pay points. There is no requirement to pay discount points; whether or not you decide to pay points is completely up to you.

 
Category(s)
Mortgage Questions - Mortgage Loans FAQ's
Home Buying Questions - General Home Buying FAQ's
Real Estate Information Sources - General Real Estate Information
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