Mortgage Definition
Points (Discount Points)
Upfront fees paid to lower your mortgage interest rate. One point equals 1% of the loan amount. Buying points makes sense if you plan to stay in the home long enough to recoup the cost.
Why it matters
This term influences how sensitive your payment is to rate shifts and fee structure. Understanding it helps you compare lender quotes beyond the headline interest rate.
Related terms
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Run your scenario
Apply this definition to your own numbers with our calculator suite.