{"id":324607,"date":"2025-12-21T23:50:24","date_gmt":"2025-12-22T04:50:24","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=324607"},"modified":"2026-01-29T06:05:50","modified_gmt":"2026-01-29T11:05:50","slug":"basis-points","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/basis-points\/","title":{"rendered":"What Are Basis Points (BPS) and How Can You Use Them?"},"content":{"rendered":"\n

Basis points (BPS) are a simple way to measure small changes in financial metrics, like interest rates or investment returns. One basis point equals 0.01%<\/a>, so a change of 25 basis points equals a 0.25% change.<\/p>\n\n\n\n

Basis points help you to understand how small changes affect your monthly mortgage payments. If your interest rate of 5.5% increases by 50 BPS, your new interest rate will be 6%. That’s thousands of dollars over the life of the loan!<\/p>\n\n\n\n

To secure the best interest rates, it’s important to get pre-approved for a mortgage<\/a>. This gives you a clear idea of your borrowing power and helps you lock in favorable terms before interest rates fluctuate further.<\/p>\n\n\n

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Get Pre Approved for a Mortgage\ud83c\udfe1<\/p>\n

Select Your Loan Type <\/p>\n

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    \n \n \"new-purchase\"\n \"active\"\n <\/span>\n New Home Purchase<\/span>\n <\/div>\n <\/li>\n
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    \n \n \"new-purchase\"\n \"active\"\n <\/span>\n Mortgage Refinance<\/span>\n <\/div>\n <\/li>\n
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    \n \n \"new-purchase\"\n \"active\"\n <\/span>\n Cash-out Refinance<\/span>\n <\/div>\n <\/li>\n
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    \n Please select a loan type first<\/span>\n <\/div>\n
    \n \u26a1With Houzeo, you can start your home-buying journey in less than 2 minutes.<\/span>\n <\/div>\n
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