Financial Planning at its B.E.S.T.

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Should You Pay Points To Lower Interest Rate?

By Brad Tinnon / July 12, 2012

First of all, let me explain what a “point” is. A point is a fee that you pay to lower your interest rate. Zero points would cost 0.00% of the loan balance. One point would cost 1.00% of the loan balance. Two points would cost 2.00% of the loan balance.

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Should You Pay Points To Lower Interest Rate?

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