Discount Points
Optional upfront fees paid to reduce the interest rate.
Definition
One point typically costs 1% of the loan amount and can lower the rate. Whether points ‘pay off’ depends on rate reduction, costs, and how long you keep the loan.
Optional upfront fees paid to reduce the interest rate.
One point typically costs 1% of the loan amount and can lower the rate. Whether points ‘pay off’ depends on rate reduction, costs, and how long you keep the loan.