Skip to main content
MoneyMolecule$MoneyMolecule
TermLoans & mortgages

Discount points

Upfront fees you can pay at closing to buy down your interest rate (1 point is about 1% of the loan).

Watch out for this

Only worth it if you keep the loan long enough to earn the cost back.

About this entry: short by design — every term in The Money Translator gets a one-sentence definition and a one-sentence reason to care. Some terms get deeper guides under the work.

More in this topic