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Discount Points also known as points, are an upfront fee paid to the lender at the time that you get your mortgage to lower the interest rate over the life of the loan. One point equals 1% of the total loan amount. In general, the more points borrowers pay, the lower the interest rate is. However, the more points paid, the more cash is need upfront since points are paid at closing.

Synonyms:
Buy-down Points, Points, Buydown
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