Buying Points to Lower Your Interest Rate, It’s Not Always a Good Idea
Discount points are fees paid to a lender at closing in order to lower your mortgage interest rate. While buying points is sometimes a good decision, many times the purchase costs you more than it saves.
How Much Do Points Cost?
The cost of each [...]
Shortly after joining the U.S. Senate and while enjoying a surge in income, Barack Obama bought a $1.65 million restored Georgian mansion in an upscale Chicago neighborhood. To finance the purchase, he secured a $1.32 million loan from Northern Trust in Illinois.
The freshman Democratic senator received a discount. He locked in an interest rate of 5.625 [...]
When it comes to comparing interest rates for amortgage loan, home buyers often have the option of choosing a loan with a lower interest rate by paying discount points.
Simply put, discount points are fees charged by the lender to reduce (discount) the interest rate charged to the borrower. A point is equal to 1 percent of the [...]