Prepay Interest Rates in Advance using Discount Points



1% Discount Points to Buy down Interest Rates



Discount points are an upfront fee paid on a loan to buy down the interest rate.  One discount point on a loan will be equal to one percent of the loan amount.  Discount points are used to prepay interest in advance to lower the monthly payment by lowering the interest rate over the term of the loan.  Lowering the interest rate on a home