As you probably know, one of the mortgage loan fees that come when you are buying a home can be points. Paying extra points can be beneficial in some cases, and can help you reduce your interest rate (helping you save money in the long run), and in some cases can even be tax deductible. Maria Nyce points out the following about paying home mortgage points:

"In general, you can knock off about 1/4 to 1/8 of a percent off your
interest rate for each point you pay," says Keith Gumbinger, vice
president of mortgage information provider HSH Associates. The 1/4 to
1/8 percent savings to which Keith Gumbinger is referring is for a
30-year fixed-rate mortgage. The savings can be 1/4 – 1/2 a percent on
a 15-year fixed-rate mortgage.

If you are planning on staying in your house for a long time, paying discount home mortgage points up front can be a good idea. The longer you stay in your home, the more the interest rate matters. 

Tags: home mortgage, personal finance, financial planning, finances,
financial goals, home mortgage points, mortgage loan, mortgage loan fees