Points (Discount Points)
Prepaid interest paid to buy down the note rate. 1 point = 1% of the loan amount. Each point typically reduces the rate by 0.25%.
| Audience | Name |
|---|---|
| Engineering (code) | — |
| Design (UI label) | — |
| Borrower-facing | an upfront fee you can pay to lower your interest rate |
| Do not use | — |
Sources
- Clarity Engine Glossary — Points
Related
Rate (Annual Interest Rate), Estimated Closing Costs