Understanding Loan Points: A Comprehensive Guide to Discount Points
Purchasing a home can be a complex process, involving various fees and decisions that can impact your overall financial situation. One such concept that often arises is loan points, also referred to as discount points. Understanding these points can be crucial for making informed mortgage decisions and potentially lowering your total loan costs.
What Are Loan Points?
Loan points are fees paid directly to the lender at closing in exchange for a reduced interest rate. This type of pre-paid interest can be used to lower your monthly mortgage payments. Discount points are essentially a way to
Related Terms: Mortgage, Interest Rate, Closing Costs.
