A "point" is 1% of your borrowed amount on a mortgage. you want to pay 2 points to get a 0.5% reduction in your interest rate on a $175,000 mortgage. how much will you…

Question

asked Mar 17, 2018 181k views

1 Answer

Anvil · Answer 1 · 2018-03-22T09:31:43+0000

$1, 750 is 1% of your borrowed amount on mortgage. Since you will pay in 2 points, the amount will be $3,500 ($1,750 multiplied by 2).