Investopedia

Continue to Site »

Closing Points

Filed Under »
Dictionary Says

Definition of 'Closing Points'

Points that are paid at the time of closing of a mortgage transaction. Closing points are paid to either the lender or the broker, and one point equals one percent of the total loan amount. Closing points are also known as discount points or mortgage points. These point are often paid in order to lower the rate of interest on the loan.
Investopedia Says

Investopedia explains 'Closing Points'

In some cases, closing or discount points are required as a condition of loan approval. These points are usually deductible on Schedule A under the mortgage interest section. Points that are paid on a purchase are entirely deductible in the year of purchase, while points paid on a refinancing must be prorated over the life of the loan.

Articles Of Interest

  1.

    A Tax Primer For Homeowners

    Go beyond interest and find out how mortgage points affect your taxable income.

  2. Mortgage Points: What's The Point?

    Learn how to pay less for your home in the long run, or save in the short run.

  3. Closing A Real Estate Deal In A Down Market

    We provide top tips on how to help sell your home in a rough market.

  4. Home-Equity Loans: The Costs

    Learn the factors to consider when comparing the different programs offered by various lenders.

  5. Score A Cheap Mortgage

    Hidden costs can create what looks like a good deal. Find out how to find the best mortgage possible.

  6. 10 Hurdles To Closing On A New Home

    It's the biggest purchase of your life - find out what can go wrong before you even close the deal.

  7. Understanding The Escrow Process

    Learn the 10 steps that lead up to closing the deal on your new home and taking possession.

  8. 6 Tips For Selling Your Home Fast

    Find out what you can do to stand out from the competition and make your home an easy sell.

  9. 5 Smart Ways To Use Your Tax Return

    This year, find out how to stretch your tax refund further to strengthen your future.

  10. Common Liabilities That Hurt Your Net Worth

    Every penny that you keep out of the liability side of the net worth equation essentially ends up on the asset side.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center