Mortgage Term of the Week: Mortgage Points! 🏡💰
Ever heard of mortgage points? They're like a golden ticket to lower interest rates on your loan. Here's the scoop:
~ Mortgage points are fees you pay upfront to your lender to snag a reduced interest rate. That means less interest over the life of your mortgage. It's basically "buying down" your interest rate!
~ Each point you buy shaves off 1% of your mortgage amount. So, on a $300,000 mortgage, one point equals $3,000. 💸
~For every point you buy, you typically trim your interest rate by 0.25%. So, one point could take a 6.5% rate down to 6.25% for the whole loan term. You can also buy more than one point or even fractions of a point. Flexibility is key!
Pro tip: If you're in it for the long haul with your home, points can be a game-changer. The longer you stay, the more you save! But remember, this upfront saving requires an initial investment. So, weigh the options carefully! You'll foot the bill for points at closing, but don't sweat it. They'll be right there on your loan estimate and closing disclosure. 📝🔑
Ready to make your mortgage work smarter, not harder? To learn more about mortgage points and what's best for your situation, contact our Mortgage Experts today! 🏡📞
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