Discount Points vs. More Money Down: The Best Use of Your Cash
Common sense says to put as much money down on a home as you can afford, but the power of discount points is undeniable.
Two ways you can save on a mortgage are putting more money down and buying discount points from the lender. Each discount point costs 1% of the principal and lowers your interest rate 0.25%. The same holds true for a refinance, where you could put more cash toward paying off your old loan (borrowing less in the new loan) or use the money to buy dis...
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