SKIP TO MAIN CONTENT
Logo
  • Resources
    • Rates
    • Calculators
      • Annual Percentage Rate
      • Debt Consolidation
      • Early Payoff
      • Payment Amortization
      • Prepayment Savings
      • Refinance Break Even
      • Rent Vs Own
      • Tax Savings
    • Mortgage Types
      • Construction Loans
      • First Time Home Buyer
      • Prequalification
    • How much can you borrow
      • Buying another home
      • Closing Costs
      • Credit Score
      • Down Payment
      • Earnest money
      • Interest Rate Lock
      • Making an offer
      • Mortgage Contingency
      • Mortgage Points
      • Rent vs Buy
      • Short sale and foreclosed
    • Privacy Policy
  • Team
  • Contact Us
  • Log In

MORTGAGE POINTS

BUY MORTGAGE POINTS TO REDUCE YOUR RATE

You have an option to reduce the interest rate on your mortgage loan by "paying for points". One point costs 1% of your mortgage amount and can reduce your interest rate by about .25, meaning a lower monthly payment over the life of the loan.


APPLY NOW FOR A BETTER MORTGAGE EXPERIENCE.

 

Apply Now

QUESTIONS?

Click to Request a FREE Consultation
Contact Us

HOW MUCH CAN YOU AFFORD?

Take the first step and get prequalified.

Pre-Qualify

MORTGAGE POINTS: Paying up front

When you're paying for mortgage points, you’re essentially paying part of your interest up front. This lowers your interest payment because your lender receives the income in a lump sum at closing rather than collecting the interest as you make payments month to month.

If your mortgage amount is $100,000, one point would cost $1,000 at closing. If you were quoted an interest rate of 4%, paying one point would reduce your interest rate to about 3.75%.

Paying mortgage points doesn't reduce the amount borrowed—it simply lowers your interest rate and monthly payment. You aren’t required to pay points, though.
 

DOES IT MAKE SENSE FOR YOU?

Generally speaking, the longer you plan to remain in a property or hold your mortgage, it is to your advantage to pay points. If you plan to move or refinance within the next 2–4 years, paying points may not make sense.

Find out if paying mortgage points would be beneficial with our calculators. You can estimate your "break-even" time frame—the point when you'll start to realize a genuine cost savings from your mortgage points.

 


Results of the mortgage affordability estimate/prequalification are guidelines; the estimate isn't an application for credit and results don't guarantee loan approval or denial.

All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Other restrictions and limitations apply.

HOME  •  RATES  •  RESOURCES  •  TEAM  •  CONTACT US  •  CALCULATORS  •  PRIVACY POLICY

 

 

 

Copyright © 2022 Members 1st Federal Credit Union

5000 Marketplace Way, Enola, PA 17025

(800) 283-2328    |    MortgageAppointments@Members1st.org

 

HOME  •  RATES  •  RESOURCES  •  TEAM  •  CONTACT US  •  CALCULATORS  •  PRIVACY POLICY

 

 

 

Copyright © 2022 Members 1st Federal Credit Union