REAL TipS: BUYING
Are discount points right for me?
If you are in the market to buy a home, shopping for a loan is one of the most important steps. Many decisions go into that final mortgage contract, and one involves purchasing discount points. Essentially, discount points are fees paid to the lender at closing that can help you lower the interest rate on your home loan.
Buying points can save you money but if you don’t do the math, it may cost you more in the end. Ask your Texas REALTOR® or your mortgage professional questions including:
- Should I buy points?
- Can the seller pay for my discount points?
- How will each point purchased affect my overall interest rate?
- How much are points?
The answers can help you determine if buying discount points will benefit you.
Texas Association of Realtors®
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