How To Buy Down Points On A Mortgage Direct

: Ask your loan officer for a menu of interest rate options. This sheet shows the cost (in points) or credit associated with different rates.

: Each point generally reduces your interest rate by 0.25% .

: On your Loan Estimate or Closing Disclosure, these fees are often listed as "prepaid interest". Step-by-Step Guide to Buying Points

Example: A 6.5% rate could be lowered to 6.25% by buying one point.

: Divide the upfront cost of the points by your monthly savings to see how many months it will take to recoup the investment.

: Ask your loan officer for a menu of interest rate options. This sheet shows the cost (in points) or credit associated with different rates.

: Each point generally reduces your interest rate by 0.25% .

: On your Loan Estimate or Closing Disclosure, these fees are often listed as "prepaid interest". Step-by-Step Guide to Buying Points

Example: A 6.5% rate could be lowered to 6.25% by buying one point.

: Divide the upfront cost of the points by your monthly savings to see how many months it will take to recoup the investment.