Chapter 4

APR, points and buydowns

Paying now for a lower rate

An explorable chapter on what discount points cost and when they pay off, why the APR is higher than the note rate, and how a 2-1 temporary buydown is funded.

1. 4.1
   Discount pointsOne point is one percent of the loan
2. 4.2
   Why the APR is higherThe same payment, on less money
3. 4.3
   Temporary buydownsTwo points off, then one, then the note rate

2 slider tasks · 2 practice sets · 8 questions