Do you plan on keeping your loan for a while? If so, then it may make sense to "buy" a lower interest rate by paying one or more "points."

Even if you're unsure of how long you plan to keep your mortgage before you move or refinance, paying points now for a lower rate may make sense. For example, do you have a high-paying job now but you think you might change careers in the next few years? We can help you sort it out. It's part of our finding the right loan for your means and goals.

A point equals one percent (1%) of the total loan amount. For the buyer it is an up-front fee that lowers your monthly interest rate as well as the total interest you will pay over the life of the loan. So, a one point loan will have a lower interest rate than a no point loan. Basically, when you pay points you trade off paying money later in favor of paying money on the front-end. You can pay fractions of points, meaning there are a number of "point" packages that can make your loan's terms more favorable.

With a variety of rate and point combinations available, as you look at different loan programs, don't look just at the rate -- compare the whole package. Federal law requires lenders to publish their loans' Annual Percentage Rate, or A.P.R. The A.P.R. is a tool that can be used to compare different terms, offered rates, and points.