| Points (or Discount Points) |
|
|
|
| Mortgage Glossary | |
|
Points or Discount Points - Amounts paid to the lender based on a percentage of the loan amount to lower or "buy down" the interest rate. Each point represents one percent of the loan amount. For example, one point on a $100,000 mortgage is 1% of $100,000, or $1,000. Paying one point on a 30 year fixed mortgage might buy down your interest rate 1/8 (.125) of one percent. Discount points are used to calculate your Annual Percentage Rate.
|
|
| < Prev | Next > |
|---|
