Mortgage points: How do they work? | Chase.com – Chase News & Stories

February 14, 2022 By admin

We don’t support this browser version anymore. Using an updated version will help protect your accounts and provide a better experience. 
Update your browser
Please update your browser.
We don’t support this browser version anymore. Using an updated version will help protect your accounts and provide a better experience.
Update your browser
Home
Sign in
Free credit score
Financial Education
OPEN AN ACCOUNT
CONNECT WITH CHASE
Customer Service
Give feedback
Schedule a meeting
Find ATM & branch
It appears your web browser is not using JavaScript. Without it, some pages won’t work properly. Please adjust the settings in your browser to make sure JavaScript is turned on.

As a savvy homebuyer, you already know the importance of shopping around for the best mortgage rate and negotiating prices. What if we told you there was another step you could possibly take to make your rates even more competitive? Hopefully, your ears have perked up now. Today we will be discussing mortgage points.
Mortgage points are a way to pay extra money upfront during closing to lower your monthly payments and interest rate.
Mortgage points are a way to save on your monthly payments by putting up more money than required towards interest during closing. You pay these fees directly to your lender. This shrinks your monthly payment because your lender receives a lump sum at closing and collects less money every month. Another term for this is “buying down the rate.”
Each mortgage discount point usually costs one percent of your total loan amount, and lowers the interest rate on your monthly payments by 0.25 percent. For example, if your mortgage is $300,000 and your interest rate is 3.5 percent, one point costs $3,000 and lowers your monthly interest to 3.25 percent.
According to the IRS, points may be deductible as home mortgage interest. If you’re able to deduct your interest, you may be able to do the same for the points paid on your mortgage.
If you can afford to put down more money during closing and intend on staying in your home for a long time, mortgage points could help you save a decent amount of money on interest. Speak with your Home Lending Advisor today to see what option is best for you.
This handy guide will help you decide exactly how much of your salary you should be spending on mortgage payments every month.
A little preparation can make the mortgage process a lot easier. Use this checklist to gather documents that may help expedite the process.
Learn how mortgage payments work, how to pay them back, and the pros and cons of monthly versus biweekly mortgage payments.
We offer a variety of mortgages for buying a new home or refinancing your existing one. New to homebuying? Our Learning Center provides easy-to-use mortgage calculators, educational articles and more. And from applying for a loan to managing your mortgage, Chase MyHome has everything you need.
Whether you’re determining how much house you can afford, estimating your monthly payment with our mortgage calculator or looking to prequalify for a mortgage, we can help you at any part of the home buying process. See our current mortgage rates, low down payment options, and jumbo mortgage loans.
Refinance your existing mortgage to lower your monthly payments, pay off your loan sooner, or access cash for a large purchase. Use our home value estimator to estimate the current value of your home. See our current refinance rates and compare refinance options.
Our affordable lending options, including FHA loans and VA loans, help make homeownership possible. Check out our affordability calculator, and look for homebuyer grants in your area. Visit our mortgage education center for helpful tips and information. And from applying for a loan to managing your mortgage, Chase MyHome has you covered.
Go to Chase mortgage services to manage your account. Make a mortgage payment, get info on your escrow, submit an insurance claim, request a payoff quote or sign in to your account. Go to Chase home equity services to manage your home equity account.
Chase Bank serves nearly half of U.S. households with a broad range of products. To learn more, visit the Banking Education Center. For questions or concerns, please contact Chase customer service or let us know at Chase complaints and feedback.

“Chase,” “JPMorgan,” “JPMorgan Chase,” the JPMorgan Chase logo and the Octagon Symbol are trademarks of JPMorgan Chase Bank, N.A.  JPMorgan Chase Bank, N.A. is a wholly-owned subsidiary of JPMorgan Chase & Co.

© 2022 JPMorgan Chase & Co.
Chase’s website and/or mobile terms, privacy and security policies don’t apply to the site or app you’re about to visit. Please review its terms, privacy and security policies to see how they apply to you. Chase isn’t responsible for (and doesn’t provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the Chase name.

source