Mortgage rates have hit record-setting lows time and time again in 2020, offering Americans a chance to save big when either buying a home or refinancing their existing one.
Those bargain-basement rates aren’t available to just anyone, though. The lowest rates are usually reserved for borrowers with the best credit. So increasing your credit score? That can help your case a lot. Because rates vary from one lender to the next, so can shopping around for your mortgage company.
If you’re willing to do some careful calculations, there’s also a third, lesser-known way to snag a low interest rate and save cash over the long haul: Buy mortgage points.
What are mortgage points?
When you apply for a home loan, you’ll have the opportunity to buy mortgage points. Each point costs 1% of your loan amount and lowers your interest by a