New home buyers will have to face many financial decisions that can get very confusing, such as whether to pay points on mortgage.
Most people know that paying points can lower their interest rate.
It sounds great but that means putting more money down. With some research, consumers can find a one-point or no point mortgage but you have to decide which is best for you. If you pay the points at the closing of the mortgage, you get a lower interest rate. If you elect a no-point mortgage, you pay a little more interest which is tax deductible. Financial experts also say the advantage of point mortgages is the money saved could be invested and over time, you could make more money from investing than having a lower interest rate.