Solve a Problem
Should I Pay Points to Lower My Rate?
Paying points trades cash today for a lower payment over time. Whether that's worth it depends mostly on how long you'll keep the loan.
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The situation
Points are often pitched as a simple upgrade — pay a bit more, get a lower rate — without explaining the break-even math that determines whether that trade actually pays off for you.
Questions people in this situation usually ask
- What exactly is a mortgage point?
- How do I know if paying points is worth it for me?
- Does paying points make sense if I might move or refinance in a few years?