Mortgage Glossary
Points
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Points are upfront fees paid to the lender, with discount points lowering the rate and origination points covering loan costs.
What Points means
One point equals 1% of the loan amount. Discount points buy a lower rate; origination points are a charge for making the loan. Both appear on the Loan Estimate.
Florida example
A Florida borrower pays one discount point ($4,000 on a $400,000 loan) to drop the rate a quarter percent. Whether it's worth it depends on how long they keep the mortgage.
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