What are mortgage points? Is it worth it to buy down your mortgage rate using mortgage points? How long will it take to earn your money back if you buy your rate down?
Mortgage points are essentially a way for you to buy down your market interest rate by paying more money upfront. This can help with cash flow and even help you afford more home and a bigger loan. While this sounds great, you shouldn't assume that buying down your rate using loan discount points is the best decision for your financial future.
You need to know what fits your immediate situation, and your near future plans, as well as longer-term investment plans. Just buying the rate down may not be the most logical.
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