Exactly what are (discount) points and loan provider credits and just how do it works?

Exactly what are (discount) points and loan provider credits and just how do it works?

Generally speaking, points and loan provider credits enable you to make tradeoffs in the way you pay money for your mortgage and shutting costs. Points, also referred to as discount points, decrease your interest as a swap investing in a fee that is upfront. Lender credits reduce your closing costs in return for accepting an increased interest. Continue reading “Exactly what are (discount) points and loan provider credits and just how do it works?”