Articles on: Rates, costs & fees

What are points and credits?

Points: Discount points are a form of prepaid interest that mortgage borrowers can purchase to lower the interest rate on their subsequent monthly payments. Discount points are a one-time fee, paid up front either when a mortgage is first arranged or during a refinance.

Credits: In exchange for taking a slightly higher interest rate, lenders can offer what is called a lender credit to help to cover some of your closing costs. These are helpful when you are looking to pay as little out-of-pocket cost at closing.

Updated on: 13/04/2023