Buying Points On Mortgage | VALIDATED ◆ |

Buying points is essentially a long-term investment. It is generally a good idea if:

: 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 points on mortgage

Cost of Points / Monthly Savings = Months to Break Even Scenario (on $300,000 Loan) Without Points With 1 Point ($3,000) Interest Rate Monthly Payment (P&I) Monthly Savings Break-Even Period 60 Months (5 Years) Calculated based on standard industry examples. When It Makes Financial Sense Buying points is essentially a long-term investment

: If you plan to sell or move within 3–5 years, you likely won't recoup the upfront cost. buying points on mortgage