Discount points are prepaid interest that are tax deductible.
They help lower your rate, and you generally start saving after 3-4yrs of mortgage payments.
Origination fees are different, and are charged to originate the loan. Most lenders charge this fee in the same way a discount point is charged.
Discount points are optional.....Origination fees are negotiable
Quote:
Originally Posted by tarheelcoach
Are points ever required by the lender? Or can I choose whether to pay points or not?
My original loan has 2 points on it, but I've been reading that it is usually not a good idea to pay them.
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