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This answer is from Paying Points?

Steve Heideman
FiLife Contributor
about a year ago

Hey there Ben!
Your question about points was answered by us gurus in a post here

As to your question on paying points on the "front" of the loan, it means that you pay cash for them at closing versus having them built into your interest rate. The latter will effect your monthly payment, the former is cash out of your pocket when you close. Here is an equation to decide whether or not to do this: Lump sum cost of points divided by

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