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Real Estate Glossary

What does Point mean?

Point - A point is a unit of measurement used in the mortgage industry to indicate the interest rate on a loan. One point is equal to 1% of the loan amount, and points are often used as a way to buy down the interest rate on a loan. Borrowers can choose to pay points to lower their interest rate, which can result in lower monthly mortgage payments.

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Artur
Real Estate Assistant