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In a home purchase, what are discount points?

Heybonita

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In a home purchase, what are discount points?

In a home purchase, what are discount points?

▸ A reduction in the annual interest rate of the mortgage loan because the buyer made a higher-than-required down payment

▸ A reduced annual interest rate because of a very high credit score

▸ A reduction in the closing costs due to the fact the buyer put up a large amount of earnest money

▸ Interest paid up front to the lender in return for a reduced annual interest rate

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Personal Finance

Personal Finance

Edition: 2^nd

Author: Bajtelsmit

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