Discount points are fees specifically used to buy-down your rate. This makes them different from “origination points”, which are fees that a bank charges to “do your loan”.

Discount points also can be tax-deductible, depending on which deductions you can claim on your federal income taxes.

To really benefit from it, it’s important to consider how long it will take for you to recoup the cost of buying points. This is called the break-even period. You will be able to know if buying discount points will be financially beneficial for you at the long run.

We at Home Loans On Demand are committed to your real estate financial needs as we partner to assure you receive only the best home-loan solution specifically suited to your financing and lifestyle needs.