Discount points allow you to lower your interest rate. They are essentially prepaid interest, with each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases with each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.
When shopping for carpet, ask about the “green label” program. According to the carpet Industry, the label tells consumers that this carpet type has been tested and passed emissions criteria. The label, however, is not a guarantee that the carpet will not cause health problems. A toll-free phone number is available on the label for updated information on the industry’s program.