When people hear about “mortgage loan points”, especially those who already bought their homes through obtaining a home mortgage loans, they often change in face. Points on one’s mortgage loan are always associated with major fees payable at closing a mortgage loan deal. One point is about one percent of your new property value, in a word, that’s a lot of money. Let’s say, if your mortgage loan amount is 300,000 in US dollars, then one point would be equal to….that’s right, 3K. That’s a lot! And the more points you pay your mortgage lender at closing (or settlement) the lower mortgage rate – mortgage loan interest rate – you will be quoted at the end.

You don’t need a mortgage calculator to understand how much your mortgage points are worth on your loan, it’s some basic math. Check out different options regarding mortgage loan points with different mortgage companies.