0 Points Paid: Rate @ 5.750, P&I @ $1167.5

1 Point Paid: Rate @ 5.125, P&I @ $1088.94

What does this mean for you? When you are applying for a Mortgage Loan you might hear something about Points.  Essentially, points act as pre-paid interest; 1 point equaling 1% of your mortgage.  By paying points on your mortgage you can get a lower interest rate which in turn lowers your monthly payments, saving you money during your time in the house.  For example, if you have a $200,000 loan with 1 point paid, you can bring your rate from 5.750 down to 5.125 saving you $78.52 a month on your mortgage.  Saving at that rate you can break even from paying that point in about 2 years, and you will then have an extra $78.52 a month to save or do what ever you would like.  Not too bad of a deal right? When you apply for your loan ask if this point system is right for you.*

*Interest rates change constantly and this is only an example. Talk to a loan officer for more details.