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The lender offers a high discount rate per point (rates generally range from 0.125% to 0.25%). You will still have enough cash for at least a 20% down payment and your closing costs.
However, the best mortgage rates go to borrowers with the highest credit scores (usually 740 or above). ... If you want a lower rate, you could buy a mortgage point for $4,000 and knock your rate ...
You have the option to purchase points in non-round-number amounts as well, such as paying $1,375 for 1.375 points on a $100,000 mortgage—or even purchasing less than a point, such as $125 for 0 ...
A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.
Keep in mind that approval and your actual rate offer will also depend on your home, location and current mortgage rate trends. Improve your credit score. Compare refinance rates. Buy points to ...
A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.
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