Advantages of Paying Points

Mortgage and Lending with Peoples Bank

  • Points paid on a purchase transaction are a tax deduction in the year of the close of escrow
  • Paying points can dramatically reduce the interest rate on the loan
  • Lowering the rate lowers the payment, lowering the income needed to qualify
  • A lower rate saves the buyer thousands of dollars over the life of the loan
  • There's never been a better time to buy down a rate
  1. Historically .50 point lowered the rate by .125%
  2. Now .50 point lowers the rate by nearly .20%

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