👉 Alright, let's define that! Are you looking for a way to make your home more affordable without spending a dime? Well, there is a term we've got here: "mortgage points." These are just like the extra fees you might pay when you buy a house, right? But in this context, it's not about buying stuff or paying people; it's about what these points mean for your savings.
Imagine this scenario: You're thinking of selling your home and moving. When you do, you need to consider your mortgage payments. If you keep putting down enough money upfront with a lender like the one in the example, then you'll actually be saving some cash on closing costs, right? But if you decide to make extra points available for refinancing or buying another house, it means that you're taking a bigger risk, and it could mean higher interest rates when you borrow again. So, with "mortgage points," you've got yourself into a very interesting financial proposition. It's not just about saving on the mortgage itself; it's also about how much you'll have to pay in interest over the lifetime of your loan if you want to refinance or buy another house later! That's why we call it, "are mortgage points worth it?"
