Buy Down Points Mortgage May 2026

: It is a strong financial move if you plan to keep the loan long enough to reach the "break-even point" . This is when the monthly savings from the lower rate finally exceed the initial cost of the points.

: If you have surplus funds after your down payment and closing costs, "buying" a lower monthly payment can improve your long-term cash flow. When It Is Not Worth It buy down points mortgage

Buying down mortgage points (also known as ) is a strategy where you pay an upfront fee at closing to lower your interest rate for the life of the loan. It is essentially prepaid interest ; one point typically costs 1% of the total loan amount and reduces your rate by approximately 0.25% . When It Is Worth It : It is a strong financial move if