Each point costs a fee equal to 1 percent of the loan amount and typically reduces your mortgage rate by about one-eighth of a percentage point. So if you're borrowing $250,000 and the standard interest rate is 4.00 percent, you can buy a point for $2,500 and reduce your rate to 3.875 percent.
How much should you save every month? Many sources recommend saving 20 percent of your income every month. According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for essentials like rent and food, 30 percent for discretionary spending, and at least 20 percent for savings. We agree with the recommendation to save 20 percent of your monthly income.
3 plan on saving money taking into consideration your monthly expenses and earnings create a savings category within your budget and try to make it at least 10 15 percent of your net income if your expenses won t let you save that much it might be time to cut backecord your expenses the first step in saving money is to know how much you are spending for one month keep a record of everything you spend that means every coffee every newspaper and every break time snack you purchase for the entire month