 TITLE: How Do Mortgage Points Work? CONTENT: How a Good Credit Score Can Lower Your Interest Rate\n----------------------------------------------------\nBuying mortgage points isn't the only thing that can impact your loan's interest rate. You may get offered different rates depending on the lender, type of loan and how much money you put down. Additionally, your credit can have a direct impact on your mortgage rate.\nFor example, using the FICO Loan Savings Calculator, you can see how increasing your FICO® Score☉ can lead to lower interest rates. For a $300,000, 30-year fixed-rate mortgage, the national average rate is currently 4.378% for those with a FICO® Score in the 640 to 659 range. This translates to a monthly payment of $1,498.\nHowever, increasing your credit scores to the 680 to 699 range would bring your rate down to 3.734% and monthly payment down to $1,387. To buy the same rate change, you'd have to purchase 2.576 mortgage points at a cost of $7,968.\nLearn more about improving your credit, and ideally start working on your credit long before you buy a home. END