Buy Down Points Mortgage — Recent & Premium

: If you have surplus funds after your down payment and closing costs, "buying" a lower monthly payment can improve your long-term cash flow. When It Is Not Worth It

Example : Paying $4,000 to save $100/month means your break-even point is (3.3 years). Comparison Table (Sample $500,000 Loan) Interest Rate Upfront Fee Monthly Payment Monthly Savings Break-Even Time ~60 months ~60 months Data based on estimates from PenFed Credit Union . What Are Mortgage Points And How Do They Work? - Bankrate buy down points mortgage

: If you plan to sell the home or refinance within a few years, you likely won't reach the break-even point, meaning you’ve wasted the upfront fee. : If you have surplus funds after your

: Paying off the mortgage early (e.g., through aggressive extra payments) reduces the total interest you would have saved, making the initial points less valuable. What Are Mortgage Points And How Do They Work