Discount Points And Interest Rates

Discount Points And Interest Rates

Mortgage discount points are calculated as a percentage of the loan amount. Paying for lowering your points up front will allow you to pay less interest over the lifetime of your loan. 

One point is equal to 1% of the total cost. 

Example:  if the amount is $350,000 of the home loan, the 1% of this would be $3500. These points are paid at the closing table. The reduction of your interest rate that will be discounted depends on several factors including the specific lender, loan type and overall mortgage market conditions in your area. 

Lenders determine their own pricing that is  why it's important to shop for your mortgage lender and ask them to provide specific examples of your overall costs. 

The national housing survey found that in 2018 more than 1/3rd  of Home buyers did not shop around before selecting their mortgage lender. 


Karin Waterschoot-Perez Headshot
Author:
Phone: 614-774-1741
Dated: December 13th 2019
Views: 320
About Karin: Experienced Realtor, Karin Waterschoot-Perez, currently serves buyers and sellers located in and aro...

Property Search









RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

7 Tax Benefits Of Owning A Home - 7 Tax Benefits of Owning a Home: A
Feb 6 2020 70579 1 - Have you been thinking of making
Negotiating The Home Inspection Process - By: Chris M Johnson - Your
Feb 2 2020 70307 1 - Beautiful Home in a great!&

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Plum Tree Realty
9078 Union Centre Blvd #350
West Chester Township, OH
513-214-0578
513-318-0117

Other Locations