👉 Mortgage discount points, also known as mortgage discounts, are a type of financial incentive that homeowners receive when they take out a mortgage. It's like how you get to pick your own birthday cake instead of buying the whole one. When you're approved for a mortgage loan and pay off the balance with interest over time, you get to choose which slices you want to eat with each payment.
For example: Say you're looking to buy a house in the city, but your budget is limited. You can go ahead and take out a home loan even if it's expensive because you know your mortgage will pay off within 10 years of buying the house! That way, you only have to pay for interest once per month, which means you're not paying as much for a smaller house. But remember, just like when you pick your birthday cake, it's also very important to consider all costs and benefits before making any big decisions.
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