Should I pay points to buy down my mortgage rate?
Buying points makes sense when you keep the loan long enough to recover the upfront cost through lower payments. Compare the cost of the points against the monthly savings to find the break-even month.
Interest Rates · Written by Anil Aggarwal, Realtor® | Mortgage Loan Officer · Updated August 8, 2026
One point is 1% of the loan amount, and how much rate it buys varies daily by lender and market conditions.
If you expect to refinance or sell before break-even, the points are likely wasted. If you expect to keep the loan for a long time, the savings continue after break-even.
A seller credit can sometimes be applied toward a rate buydown instead of closing costs; permitted uses depend on the loan program and lender rules.
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