Buy Down Points Mortgage Apr 2026

: 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.

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

: Find the difference between the monthly payment at the higher rate and the lower rate. : If you plan to sell the home