What are Discount Points?

https://958.prequalifyme.today for no SS#/hassle/obligation help What are discount points? Discount points are a kind of prepaid interest that a borrower pays as an upfront fee to their lender at the time of closing. By paying discount points you pay more up front but receive a lower interest rate and therefore pay less over the life of the mortgage. In general one discount point costs 1% of the total loan amount and paying it up front can reduce your interest rate typically by 0.125% and 0.25%. So, for example, on a $100,000 dollar loan, with an available rate of 4%, one discount point would require $1000 do at closing. But your interest rate will be reduced to between 3.75% and 3.875% for the life of the mortgage. Lenders benefit from discount points by receiving cash up front instead of waiting for money in the form of interest payments over time. The exact amount that your interest rate is reduced depends on your lender, the type of loan, and current mortgage market conditions. The longer you plan to stay in your home the more sense discount points make. If you plan to relocate or refinance in the near future, paying discount points is probably not for you. #point #points #discountpoint #discountpoints #originationfee #originationfees #prepaidinterest #upfrontfee #closingcost #closingcosts #advisors #mortgage #mortgages #loan #loans FREE Real Estate tips: http://RealEstateWithAdvisorsJG.com FREE Guides: Home Buying-https://bit.ly/33UTW2K Home Selling-https://bit.ly/3mTvLuv FREE “INSTANT” HOME VALUE: http://HomeValuesWithAdvisorsJG.com PREQUALIFY for loan: https://bit.ly/2GuyvgQ APPLY for loan: https://bit.ly/2HH6cwi 732-500-6883 https://JGraff.AdvisorsMortgage.com/contact https://facebook.com/nmls1974758 FREE MORTGAGE CALCULATORS: https://JGraff.AdvisorsMortgage.com/calculators FREE current copy of my periodical eMag: "HOME LOANS NEWS": https://1drv.ms/u/s!Al3KFhVmz0hu8zVpDugzDgdYmOiv?e=RMwEP1 And FREE subscription for anyone interested in receiving it via email - just instant message me your email address - no hassle/obligation - cancel anytime - absolutely FREE! "I wrote the book on home loans...;o)" - James H. Graff FREE "beta/test" copy of my new 70+ page, pdf Ebook "HOME LOANS: LINKS to lots of FREE guides, tips, info, advice on virtually ALL current aspects of buying, selling and financing a home" FREE copy: https://1drv.ms/u/s!Al3KFhVmz0hu8zh4BHmqfOrEdO9U?e=2kbvT4 HOME LOANS James Graff NMLS# 1974758 Advisors Mortgage Group, L.L.C. NMLS# 33041 2899 Highway 35 North Hazlet N.J. 07730 In 34 states of The United States of America: AZ CA CO CN DE D.C. FL KS KY IL IN ME MD MA MI MN NJ NY NC OH OR PA RI SC SD TX VT VA WA WV Cash out refinance, debt consolidation, renovation loan, reverse mortgage, pre-qualify, pre-approval letter, FHA VA USDA HELOC HECM FNMA Fannie Mae FHLMC Freddie Mac... #mortgages #mortgage #marketupdate #refinance #homebuying #realestate #homeownership #advisors #marketupdates #homeloan #homeloans #debtconsolidate #realtor #realestateagent #agent #mortgagecalculator