Are discount points refundable if the loan doesn't close?

Are discount points refundable if my loan doesn't close?

You want to know if discount points are refundable when a loan doesn't close. Discount points are fees you pay upfront to lower your mortgage rate, and what happens to those funds when a deal falls through depends on timing and circumstances.

Discount points are typically paid at closing, so if your loan doesn't close, you haven't paid them yet. The points appear on your Loan Estimate and Closing Disclosure as part of your closing costs. Most lenders collect these fees when you sign final paperwork and transfer ownership.

Some situations work differently. If you paid an application fee that included points, or if you're in a construction loan where points were collected upfront, the refund process varies by lender. Check your loan agreement and any fee receipts to see what you've already paid.

Contact your lender to clarify their specific policies. Share your loan documents and ask about their process for loans that don't close. The lender can walk you through what fees you've paid and what happens to those funds if your loan falls through.