05/16/2026
🙌 Let’s break this down a bit more:
When you purchase mortgage points, you’re paying upfront to lower your interest rate.
✔️ One point typically costs 1% of your loan amount.
✔️ The amount your rate is reduced can vary depending on the lender and current market conditions.
Here’s an example 👇
Instead of offering $390K on a $400K home, you could consider offering full price and requesting a seller concession to help buy down your rate.
If you used about $10K toward discount points on a $400K loan, it could potentially lower your rate from around 7% to approximately 6.38%.
✔️ Monthly payment at 7% = about $2,661
✔️ Monthly payment at 6.38% = about $2,497
That’s a savings of roughly 💰 $164/month before taxes and insurance.
Over time, that can add up in a BIG way.
Curious what this could look like for your situation? Give me a call and let's discuss!
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Disclaimer: Rates, payments, concessions, and point pricing vary based on lender guidelines, loan type, credit profile, and market conditions. Example figures are for educational purposes only and are not guaranteed.