Skip To Content

What are Points?

A point is  1% of the amount being borrowed and used to reduce the mortgage interest rate.

Points are considered pre-paid interest. If two lenders were charging the same interest rate but one charged point, that lender charges more interest.

Lender #1: $300,000 @2.75% Zero points

Lender #2: $300,000 @2.75% One point.

Trackback from your site.

Leave a Reply

*
*