Discount Points

Discount points let you trade cash at closing for a lower interest rate over the life of the loan. One point equals 1% of the loan amount (so $5,000 on a $500K loan). Lenders publish a rate sheet showing the rate reduction per point; typical ranges are 0.125% to 0.25% off per point.

Points make sense if you'll hold the loan long enough to break even on the upfront cost through lower monthly payments. Calculate breakeven: cost of points ÷ monthly savings = months to recoup.

Why it matters for Milo customers

Discount points are optional on Milo crypto-backed mortgages. Borrowers planning to hold the loan long-term may benefit from buying points; those expecting to refinance when crypto appreciates often skip them.

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