Should You Pay Points?
You might reconsider buying down your mortgage rate.
May 2022
When considering your mortgage options, it’s important to understand all the component parts that make up your total monthly payment. That way you can ensure the loan is structured according to your best interest. One thing to keep an eye out for is points.
What are Points?
Lenders may offer what are called discount points, or simply points. One point is typically 1% of the loan amount.
How Do Points Work?
A lender may charge a borrower points in order to lower their interest rate. This is sometimes referred to as “buying down the rate.” Or, you may be presented with an incredibly competitive interest rate, and not realize that points have been rolled into your closing costs. That’s why it’s important to review your mortgage in detail and ask questions in order to understand what you’re being charged and why.
Should You Pay Points?
There is a lot to consider when deciding whether or not to pay points: your current financial situation, personal and financial goals, the market. While every borrower’s situation is different, as of the spring of 2022, here’s Ken Friend’s perspective on the matter.
At Long Grove Mortgage, we aim to empower our clients with the knowledge they need to make informed decisions about their financial future. We know it can be a complex process, but we do it every day. We’re here to walk you through it from start to finish.
Do you have questions about your mortgage options? Give us a call any time.
Ken Your Mortgage Friend
NMLS #220638 • 847-634-2252
kenfriend@longgrovemortgage.com
Long Grove Mortgage • NMLS 210846
www.longgrovemortgage.com
instagram.com/longgrovemortgage
