Mortgage Terms: A fee equal to 1 percent of the loan amount that is prepaid interest on the mortgage loan.

The more points, the lower the interest rate.

Borrowers can typically pay from 0-4 points. It is also tax-deductible.

Question

A fee equal to 1 percent of the loan amount that is prepaid interest on the mortgage loan.

The more points, the lower the interest rate.

Borrowers can typically pay from 0-4 points. It is also tax-deductible.

Memorable Ladybug · Accepted Answer

Discount Point

A fee equal to 1 percent of the loan amount that is prepaid interest on the mortgage loan. The more points, the lower the interest rate. Borrowers can typically pay from 0-4 points. It is also tax-deductible.