Is It Worth Paying for Mortgage Points?

When applying for a mortgage, having a stellar credit score (think: 720 or higher) is the best way to land a low interest rate. But did you know that you could pay additional money at closing to get an even lower interest rate?

Before you commit to a specific loan, your lender might ask you (and if he doesn’t, inquire yourself) if you’re interested in buying points. A point is essentially a fee that is 1 percent of the loan amount. For every point you buy, your interest will generally be lowered 0.125 to 0.25 percent in return…

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