A no-points option generally means the borrower is not paying upfront origination or discount points to reduce the cost of borrowing. That can make upfront costs lower, but the overall structure may differ from an option where points are paid. When comparing choices, borrowers should look beyond the headline payment and review the full cost breakdown, including upfront costs, monthly payment, and how long they expect to keep the loan. The official Loan Estimate is the document to use before making a decision.
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What does a no-points mortgage option mean when comparing mortgage choices?
These answers are educational only and are not individualized financial, legal, or mortgage advice. Programs, rates, and guidelines change and vary by situation — talk with Tara Ryan, Loan Officer, NMLS #233792, for guidance specific to your scenario.
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