Is one discount point the same as reducing the interest rate by 1%?
Staff Q&A from the 63Hours team.
Course Q&A
Ask clear questions about the Florida real estate course and learn from course-specific answers.
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No. One point costs 1% of the loan amount; it does not promise a one-percentage-point rate reduction. For a $280,000 loan, one point is $2,800. The actual rate change depends on the lender and offer. The course's points discussion is easier to follow when you keep the upfront fee and the interest rate separate.
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Discussion prompt: Are you calculating the cost of points or the offered rate reduction?