Buying mortgage points—also known as —is a strategy where you pay an upfront fee at closing to "buy down" your interest rate. This trade-off trades current cash for long-term savings, potentially reducing your monthly payments and total interest over the life of the loan. How Mortgage Points Work
AI responses may include mistakes. For financial advice, consult a professional. Learn more Everything You Need to Know About Mortgage Discount Points buying points on mortgage
: If the break-even is long (e.g., 8+ years), you might see a better return by investing that cash in a high-yield savings account or a 401(k). Key Considerations for 2026 Buying mortgage points—also known as —is a strategy
: You plan to stay in the home well past the break-even point, typically more than 5–7 years. For financial advice, consult a professional
: If you think you'll refinance soon because market rates are falling, paying for a permanent buydown now is a wasted expense.
: You can generally only deduct interest (including points) on the first $750,000 of mortgage debt ($375,000 if married filing separately).