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point definition - finance
A finance charge that is paid up front on mortgages by the borrower. A point is 1 percent of the loan value. For instance, on a $200,000 mortgage, $2,000 is the point the borrower would pay as a finance charge. Points are tax deductible because the money paid is mortgage interest. However, points likely may have to be deducted across the life of the loan.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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