How much does my home loan cost?
	Mortgage lenders normally offer the same home loan at various interest rate costs depending on how many discount points you choose. Pay more points, and you'll get a lower interest rate on your home. Or, in exchange for a higher interest rate, get rebate points to offset some of your loans closing costs.
	Discount point example Paying discount points Each discount point you pay typically lowers your interest rate by about 0.25%. So, if the current market rate with zero points is 8.00%, you could pay a lender to reduce it to 7.75% by paying one discount point. On a $100,000 home loan, that one discount point would cost $1,000. Getting rebate points Each rebate point you receive typically increases your interest rate by about 0.25%. So, using an 8.00% rate with zero points, you could get one rebate point in exchange for increasing your interest rate to 8.25%. On a $100,000 loan, that one rebate point would equal a $1,000 credit towards your loan closing costs. Note that you can't get any cash from rebate points-- and they can only pay for some of your homes closing costs. Costs they don't cover Rebate points don't cover prepaid hazard insurance, prepaid interest, mortgage insurance impounds, hazard insurance impounds, and property tax impounds. Loan cost calculator Here's a mortgage loan cost calculator to help figure your homes cost.