Rates & Locks
Should I buy mortgage points to lower my rate?
Context
Points can lower your rate, but whether they are worth it depends on your time horizon.
The short answer
Buying points (a discount fee paid at closing) lowers your rate, so it makes sense mainly if you will keep the loan long enough to recoup the upfront cost, the “break-even” point.
Things to keep in mind
If you may sell or refinance sooner, points often are not worth it.
Next step
We help you compare the break-even math across lender options before you decide. Ask us to run the numbers for your file.
Have a question about your own situation?
Davis Monroe Financial LLC serves Minnesota homebuyers and homeowners. You complete one application. We compare the wholesale lenders on our panel and submit your file to the one that fits it best, and each one offers, so your pricing is not limited to one lender's rate sheet.
Davis Monroe Financial LLC is a mortgage broker, not a lender. We do not make credit decisions or fund loans. Rate locks are issued by the lender; we submit and manage lock requests on your behalf. All loans are subject to credit approval. Rates and terms are subject to change without notice.