Quick answer: Upfront costs that may reduce the interest rate or change loan economics.
Definition
Upfront costs that may reduce the interest rate or change loan economics.
Why it matters
Mortgage Points matters because buyers need to understand the full cash-flow impact of a mortgage before committing to a home.
Related formula
True monthly cost = loan payment + ownership costs + utilities + maintenance reserve
FAQ
What does Mortgage Points mean?
Upfront costs that may reduce the interest rate or change loan economics.
Why does it matter for affordability?
Mortgage Points can change the true monthly cost or cash required to buy a home.
Where can I test it?
Use the TrueCost calculator to see how the term affects payment, DTI, or leftover cash.