What Are Mortgage Discount Points?
Автор: Home Buyers and Sellers Guide
Загружено: 2026-02-04
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Ever wondered if there's a smart way to slash your monthly mortgage payments right from the start? This video demystifies mortgage discount points, a financial strategy many homebuyers use to optimize long-term housing costs.
Discover the key benefits and mechanics of mortgage discount points:
► Mortgage discount points allow you to pre-pay interest upfront in exchange for a lower interest rate over the life of your loan.
► Each 'point' typically costs one percent of your total loan amount, reducing your ongoing interest payments.
► Learn how to calculate your 'breakeven point' to determine if buying points makes financial sense for your long-term homeownership plans.
► Understand that the cost of these points may be tax-deductible, offering an additional financial advantage.
► Use discount points as a powerful tool to significantly reduce the total cost of your home loan over the years.
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