Points are prepaid mortgage interest, and you may have to pay points at closing in order to get a lower interest rate on your mortgage loan. For more, see section on Points . The interest rate of the mortgage you're applying for may go up or down before you close on the home. That's why it may be wise to lock in the rate for a specified period of time, rather than let the rate float until the closing. Be sure to ask the lender if there is any fee for locking in the rate and whether you also can lock in points.
Mortgages come with a list of fees.
Ask for a list of estimated closing costs before applying for the loan. See section on the good faith estimate . Also, remember that some fees must be paid upfront such as the credit report, property appraisal and loan application fee. Some lenders may only refund the fee if they turn down your application. The prepayment question is for all loan shoppers.