Buying Down Mortgage Rates with Points
A point, also known as a discount point, are fees paid to the lender or broker for the loan. The more mortgage points you pay, the lower the rate will be. A point is equal to 1 percent of your mortgage amount. Example, if your mortgage loan is $400,000, and you buy 1 point, the additional upfront costs would be $4,000 which can be rolled into the mortgage instead of having to come up with the payment at closing. Lender
APR / Rate
Fees / Points
Payment
 NMLS #2473786
4.894%
15-Year Fixed
4.750%
$3,839
Includes 0.686 points for $2,744
Lender Fees: $1,095
$3,112 /mo
 NMLS #757416
5.005%
15-Year Fixed
4.875%
$3,436
Includes 0.859 points for $3,436
Lender Fees: $0
$3,138 /mo
 NMLS #1025894
5.011%
15-Year Fixed
4.875%
$3,608
Includes 0.902 points for $3,608
Lender Fees: $0
$3,138 /mo
NMLS #2473786
5.104%
5-Year ARM
5.000%
$4,755
Includes 0.915 points for $3,660
Lender Fees: $1,095
$2,148 /mo
 NMLS #1928741
5.106%
15-Year Fixed
4.990%
$3,052
Includes 0.763 points for $3,052
Lender Fees: $0
$3,162 /mo
 NMLS #6606
5.398%
15-Year Fixed
5.250%
$3,884
Includes 0.971 points for $3,884
Lender Fees: $0
$3,216 /mo
NMLS #2473786
5.719%
30-Year Fixed
5.625%
$4,127
Includes 0.758 points for $3,032
Lender Fees: $1,095
$2,303 /mo
NMLS #757416
5.828%
30-Year Fixed
5.750%
$3,404
Includes 0.851 points for $3,404
Lender Fees: $0
$2,335 /mo
NMLS #1025894
5.921%
30-Year Fixed
5.875%
$2,004
Includes 0.501 points for $2,004
Lender Fees: $0
$2,367 /mo
NMLS #1928741
5.923%
30-Year Fixed
5.875%
$2,092
Includes 0.523 points for $2,092
Lender Fees: $0
$2,367 /mo
 NMLS #399799
6.086%
30-Year Fixed
6.000%
$3,831
Includes 0.626 points for $2,504
Lender Fees: $1,327
$2,399 /mo
NMLS #6606
6.091%
30-Year Fixed
6.000%
$3,904
Includes 0.976 points for $3,904
Lender Fees: $0
$2,399 /mo
Rate data provided by RateUpdate.com. Displayed by Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.
Rolling points into your mortgage loan will increase your loan amount and total costs, but you will probably still save money in the long run because your mortgage rate will be lower. Usually, 1 point can get an eight to a quarter point percentage drop in the mortgage rate. You can use a mortgage calculator to estimate what the monthly mortgage payment will be with the lower rate and also figure out how long it will take to recoup the cost of points. The longer you are planning to stay in your home the more sense it makes to buy down the mortgage rate you will pay. You can also ask for points to be quoted to you as a dollar amount, rather than just as the number of points, so that you will actually know how much you will have to pay for getting a lower mortgage rate. Explore Other Mortgage and Refinance Offers
Mortgage Rates Higher this Week: Today's Mortgage Rates on 30 Year Loans at 4.23%
Mortgage Rates Today: Lowest 15 Year Conforming Rates at 2.75 Percent
Home Mortgage Rates Hit New Low: 30 Year Conventional Mortgage Rates at 4.19%, 15 Year Conventional Mortgage Rates at 3.62%
30 Year Mortage Rates at 4.94% According to MBA
Average 15 Year Mortgage Rates Break Through 3.00 Percent Today
Mortgage Rates Lower as Bernanke and Co Leave Rates Alone
Mortgage Rates: 30 Year Mortgage Rates at 5.05%, 15 Year Mortgage Rates at 4.40%
Fixed Term Mortgage Rates Higher This Week: 30 Year Mortgage Rates and Mortgage Refinance Rates at 4.26%
Mortgage Rates - 30 Year Mortgage Rates Decrease to 5.13% and 15 Year Mortgage Rates Decrease to 4.45%
Mortgage Rates Mostly Higher Today: Current Mortgage Rates on 30 Year Home Loans at 4.00%
|
Getting a lower mortgage rate is possible by shopping around for the best mortgage rates. Another option to getting a lower rate is to buy points.
