Mortgage discount points are a way to buy down your interest rate. Each point the borrower
buys costs 1 percent of the mortgage amount. So, one point on a $300,000 mortgage would
cost $3,000. Points are essentially prepaid interest. By buying these points, you reduce the
interest rate of your loan, typically by 0.25 percent per point. Borrowers can buy more than one
point, and even fractions of a point. Typically, the longer you live in the home, the more benefit
you will receive from paying for points.

An experienced real estate agent can help negotiate seller paid contribution to buyer points.
Contact one of our agents at Right Size Realty for more information.

Goff, K. (December 15, 2022). Mortgage Points: What are they and How do they Work?
Bankrate. Retrieved from: https://www.bankrate.com/mortgages/mortgage-points/