Mortgage Points Explained
Should you buy discount points?What Are Points?
One point = 1% of loan amount, typically reduces rate by 0.25%. On a $400,000 loan, one point costs $4,000. Calculate your break-even: divide cost by monthly savings.
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Mortgage Points
Frequently Asked Questions
Are points tax deductible?
Discount points are generally deductible as mortgage interest. For purchases, deductible in the year paid.
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