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Points, also known as discount points and loan origination fees, are a form of prepaid interest on a mortgage. One point costs you 1% of the loan balance, which you pay at the time of your settlement on the home. Each point buys down your interest rate by an amount determined by the lender, usually approximately 0.25%.

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The VA home loan is a program non-military home buyers wish they had access to. Their price point is often lower than that of single-family homes. And. State , about 1,000 in Texas, and a staggering 9,000 in California.