03/11/2026
This March, are you wondering if mortgage points would be a slam dunk for your first home? Here’s a quick three-point breakdown so you can decide when paying for a lower rate might help you score in the long run:
🏀Make sure you understand what they are - Discount points are an upfront fee you pay your lender to “buy down” your rate, which can lower your monthly mortgage payment. The cost of one point typically equals 1% of your loan amount.
🏀Understand when they make sense for your loan - Points are commonly used with fixed-rate mortgages. It’s good to compare the breakeven math against other uses of cash at closing and factor in how long you plan to keep the loan.
🏀Review the potential for saving - As a rule of thumb, one point often reduces the interest rate by about 0.25 percentage points. It’s important to note that the exact savings you could see from mortgage points will vary depending on your loan, budget, and long-term plans.
Given the nuances of mortgage points, it’s best to discuss with an experienced mortgage lender. That’s where we come in with the assist. We can help you crunch the numbers and talk through your options. Give us a call today, and we can run a play that makes sense for your game.
