Tiernan and Company Solicitors Tiernan and Company Inc Tiernan and Company Ireland Mortgage Points View Mark Tiernan right here at studiohome View Mark Tiernan right here at blogspirit View Mark Tiernan right here at livejournal View Mark Tiernan right here at grab.com View Mark Tiernan right here at greenpeace View Mark Tiernan right here at blogspot View Mark Tiernan right here at wordpress View Mark Tiernan right here at bloglines View Mark Tiernan right here at tripod View Mark Tiernan right here at flickr View Mark Tiernan right here at ign View Mark Tiernan right here at greatestjournal View Mark Tiernan right here at iziblog View Mark Tiernan right here at naymz View Mark Tiernan right here at multiply View Mark Tiernan right here at 20six View Mark Tiernan right here at blogsome View Mark Tiernan right here at linkedin View Mark Tiernan right here at blog360 View Mark Tiernan right here at geocities View Mark Tiernan right here at blog.co.uk View Mark Tiernan right here at outblogger View Mark Tiernan right here at soulcast View Mark Tiernan right here at clearblogs View Mark Tiernan right here at bloggerteam View Mark Tiernan right here at ebloggy View Mark Tiernan right here at blogs.ie View Mark Tiernan right here at egoweblog View Mark Tiernan right here at bahraichblogs View Mark Tiernan right here at blog.com View Mark Tiernan right here at xanga View Mark Tiernan right here at blogbeee View Mark Tiernan right here at ning View Mark Tiernan right here at blogs.friendster View Mark Tiernan right here at vox.com View Mark Tiernan right here at easyjournal View Mark Tiernan right here at voyblogs View Mark Tiernan right here at squarespace View Mark Tiernan right here at squidoo View Mark Tiernan right here at myspace View Mark Tiernan right here at my.opera View Mark Tiernan right here at aboutus View Mark Tiernan right here at xomreviews View Mark Tiernan right here at tblog View Mark Tiernan right here at blogsavy View Mark Tiernan right here at today View Mark Tiernan right here at freewebs View Mark Tiernan right here at last.fm View Mark Tiernan right here at nireblog View Mark Tiernan right here at blog-city View Mark Tiernan right here at blogyx View Mark Tiernan right here at journalhome View Mark Tiernan right here at blogfusion View Mark Tiernan right here at sphinn If you are purchasing a home or planning to refinance your current mortgage your lender may offer you the option to pay "points" at the time of closing. The lender will send you a good faith estimate and you may notice that your down payment will be higher when you pay points. Before simply tossing the idea of paying points aside because of the higher down payment, you need to be sure that you understand what exactly points are before you make that decision. It's a decision that could save you thousands of dollars in the long run.One thing to consider when getting a home mortgage loan are points. Points are also known as "mortgage points", "loan origination fees", or "discount points". Points are up-front mortgage interest fees paid on a loan to reduce the initial interest rate. At the simplest form, paying points is a trade off between paying money now versus paying money later. One point is equal to 1 percent of the loan amount. So, say you purchase a home and your mortgage amount would be $250,000. If you paid one point, you would pay $2,500 up front.Lenders are often willing to reduce the interest rate on your mortgage in exchange for you paying points. When you apply for a loan, ask the lenders how much they are willing to reduce your rate in exchange for paying 1 point. Is it smart to take points? Well, the answer depends. The number of years you stay in your house can help determine if paying points at closing in exchange for paying a lower rate is a better deal than paying zero points at a higher interest rate level. So what is a good time horizon you ask? That depends on the situation but as a general rule if you plan on staying in your house over a short time frame, less than 5 years for example; paying points wouldn't make sense because you will be paying more in points than you will save in interest. You need to be sure you will keep the loan long enough to recoup these costs through your lower monthly mortgage payment. If, however, you plan on staying in your house for 10 years or longer, points will pay off over time. The IRS considers points to be a form of prepaid interest. This means they are tax deductible (as long as you itemize your deductions). If you are purchasing a home the points are generally deductible in the year you purchase your property. This is true even if the seller pays for your points. If you are refinancing your mortgage, points must be amortized over the life of the loan. To learn more about mortgage points