Should I Pay Mortgage Points?

If you are buying a home or refinancing, you have probably heard about “mortgage points.” This form of pre-paid interest can save you thousands of dollars over the course of your loan but in many circumstances is not worth the upfront cost. How do you know whether to pay points or not? Here’s a quick guide to help you figure it out. What are Mortgage Points? Mortgage points – also known as discount points - are essentially a way to pay some of the interest upfront on your home loan. One point is equal to 1% of your mortgage amount. For example, one point on a $100...

July 18th, 2018 | Purchasing a Home, Interest Rates, Should I Pay Mortgage Points?

Colonial Mortgage Group

Company NMLS# 70452
Paul Skeens NMLS# 7392
www.nmlsconsumeraccess.org

Licensed:  MD 17542  DC MLB70452  FL MBR1384
Licensed by the Virginia State Corporation Commission License #MC5185 & MLO-2351VA
Licensed by the PA Department of Banking License #MB35217

By refinancing your existing loan, the total finance charges may be higher over the life of the new loan.

 

Phone: 301-932-4610
Toll Free: 877-248-0500
Fax: 301-500-1201

3261 Old Washington Road Suite 1011
Waldorf, MD 20602

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