1. :: Investing In The Stock Market
2. :: Investing in Technology Stocks
3. :: Investing In Dot.com Companies
4. :: Growth Stocks vs. Value Stocks
5. :: Dogs of the Dow
6. :: Evaluating Mutual Funds
7. :: Qualified and Nonqualified Stock Options
8. :: Cashless Exercising of Stock Options
9. :: Media & the Market
10. :: How Women Invest
11. :: Inheriting Stocks at a Stepped Up Cost Basis
12. :: Investing the Money Of Superstar Athletes
13. :: Why Does the Fed Raise Interest Rates?
14. :: Tax Free Municipal Bonds -- A Wise Investment?
15. :: Financial Gifts for Special Occasions
16. :: Charitable Remainder Trusts

1. :: Is Your IRA Too Big?
2. :: What Should You Do With Your 401(k) When You Change Jobs?
3. :: Do You have Enough Money for Retirement?
4. :: Using an IRA as a Brokerage Account
5. :: IRA or Roth IRA?
6. :: Retirement Planning for the Salaried Employee

1. :: Helping Your Grown Child Buy A Home
2. :: Breaking the Taboo: Discussing Money with Your Family
3. :: When Two Becomes One: Women Left Alone
4. :: Who Should Handle Your Money?
5. :: Securing Your Baby's Future
6. :: Teaching Children Money Fundamentals
7. :: Low Risk Way to Save for High College Costs
8. :: Preparing Your Children for College
9. :: Teaching Teens Money Fundamentals
10. :: Before buying or renting a house

1. :: Interest Only Mortgages
2. :: Purchasing a Home with No Down Payment
3. :: Should I Pay Points On My Mortgage?
4. :: Should I Pay Off the Mortgage?
5. :: Second Mortgage: Revolving Line Of Credit

1. :: Internet Transactions
2. :: The Spotlight On Domain Names
3. :: Create Advertising That Sells
4. :: 8 Reasons to Put Your Business on the web

With school out for the year, summer has traditionally been the most popular time to relocate. According to the national association of realtors, the average person moves 12 times over their lifetime. To do that, most people need a mortgage to buy their home.

It is generally assumed that paying points (usually a point is one percent of the mortgage) is part of that. Paying points reduces the interest rate on the mortgage, so why do lenders offer them?

"The reason they do it is to make money," says Jonathan Gold of Merrill Lynch. "It's an upfront fee versus a no-points mortgage that might be a higher rate of return, but the institutions get an immediate cash infusion for that mortgage."

Research Before Deciding

With a little research, homebuyers can find a "points" or "no-points" mortgage. They must decide whether to pay the points on a mortgage at the closing and get a lower interest rate, or forgo the points and pay a little more interest, which is tax deductible, down the line.

"I would advise them to pay no points," says Gold. "Pay the slightly higher interest rate that they pay on their mortgage because the difference would be that the money they would be saving on the points could be invested and any investment strategy they want and over the course of the life of the mortgage the money that they would be paying in points would probably be outperforming the amount of savings they are getting on their mortgage."

More people looking for a mortgage today pay points than those that don't. But financial experts are clear in their advice not to pay points, and to use that money elsewhere. So when deciding on a mortgage, always look for independent financial advice.