discount points: Discount Points - What Are They?
- 08/12/10 01:55 PM
One of the most common questions home buyers have while obtaining a mortgage for a newly purchased home is, "What are points?" The answer - Each point or discount point, as real estate professionals and mortgage lenders often refer to them, are equal to 1% of the loan amount. For example, on a $100,000 loan, one discount point equals $1,000. And ½ discount point for the same loan would be $500. Points are paid to a lender at closing in order to lower the mortgage interest rate. Although "discount points" are a part of your closing costs, they are not considered loan … (7 comments)
discount points: About Points
- 01/24/09 11:06 AM
Often home buyers who are obtaining a mortgage for a newly purchased home, will ask, "What are points?" The answer - Each point or discount point, as real estate professionals and mortgage lenders often refer to them, are equal to 1% of the loan amount. For example, on a $100,000 loan, one discount point equals $1,000. And ½ discount point for the same loan would be $500.Points are paid to a lender at closing in order to lower the mortgage interest rate. Although "discount points" are a part of your closing costs, they are not considered loan fees. Discount points are … (7 comments)
One of the most common questions home buyers have while obtaining a mortgage for a newly purchased home is, "What are points?" 
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