Look at the difference in the payment for the price it will cost you. It normally take 2-3 years to make up the difference in savings for that point that you buy.

Then ask yourself if you will be in the same loan in that 2-3 year timeframe. Most people will move or refinance within that time.

If you do want the lower payment and know you will still be in the same loan for 2-3 years, ask the seller to pay part or all of your closing costs. That way you get the lower rate and payments, but the seller is paying the fees for you.

Good luck,

Greg S.

It all depends on you, but I don’t believe in buying points. I rather borrow as much money as possible and ride the inflation on the loan. Use the money you were going to pay for a point and invest it elsewhere or take your family on a vacation. The time you spend with your family can never be recovered. Besides, when you die, chances are your kids will sell the place to pay the taxes.

Regards