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There isn't a set amount for one point, but. For example, if you have a 5% rate of interest, purchasing one point might reduce the interest rate to 4. 75% or 4. 875%, depending on your loan provider's terms. If you're buying home mortgage points, you can buy more than one, and even a portion of one, if the loan provider enables it.
If you have an interest in mortgage points and reducing your interest rate, ask your loan provider for a rate sheet to see the rates of interest and matching home loan points. Even better, you should ask the lender for the specific dollar amount you 'd need to pay to decrease your home loan rate by a specific percentage, since points (and fractions of points) can be complicated. https://giphy.com/channel/walarirxot |
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