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Mortgage glossary
Points (Discount Points)
An upfront charge paid to obtain a particular interest rate. One point equals 1% of the loan amount, but one point does not always reduce the rate by the same amount. Whether points save money depends on the loan terms and how long the loan is kept.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.