Paying points is a way for a borrower to reduce the interest rate on their mortgage. Each point is equal to 1% of the loan amount. For example if your loan amount is $100,000, 1 point will cost $1,000. In general it makes sense to pay points when you plan to be in your home long enough that the monthly savings created by the lower interest rate exceeds the amount that you pay for points. Visit our Noble Tools > Calculators section of this site to compare the monthly payments or call one of our loan specialists today for a case-by-case anaylsis.
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