Discount Points
Each discount point costs 1% of the loan amount and lowers your interest rate. Points are optional — make sure you actually chose to buy them.
- Typical range
- up to $6,800
- Category
- Origination
- Negotiable
- Usually negotiable
Common problems with the Discount Points
- Points added without the borrower choosing to buy down the rate
- Break-even period longer than you plan to keep the loan
How to check this fee on your Closing Disclosure
Find this line item on page 2 of your Closing Disclosure. Compare the amount to the typical range, and check whether it duplicates another fee. If it is above range or a junk fee, raise it with your lender before you close — you have a 3-business-day review window.
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For informational purposes only. Not legal, tax, or medical advice.