How can I save on refinancing points?


Refinancing points are a very crucial part when shopping for a refinancing loan. Unlike points paid for the original mortgage, refinancing points are not outright deducted for income tax purposes, no matter if they are rolled into the loan or cash-funded by you. They will have to amortize for the life of the mortgage. However, they will become deductible the moment you pay off the loan in full and thus you have to keep track if you happen to refinance more than once during the years.

If you are a borrower with a perfect credit history, you may be able to shop a loan with low interest rate and with no points to buy. This will be ideal for you since lenders severely compete for homeowners with particularly good credit. If you are not that perfect client, you might have in mind it is a little better to take some higher interest rate (up to 0.5 points) rather than buy points upfront.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: