Points (Discount Points) - Mortgage Glossary
An upfront fee you pay to your lender at closing in exchange for a lower interest rate on your mortgage. One point equals 1% of your loan amount. For example, o
Points (Discount Points)
An upfront fee you pay to your lender at closing in exchange for a lower interest rate on your mortgage. One point equals 1% of your loan amount. For example, one point on a $300,000 loan costs $3,000 and might lower your rate by about 0.25%. Points make sense if you plan to keep the loan long enough for the monthly savings to exceed the upfront cost.