 TITLE: How Much Does a Mortgage Point Cost? CONTENT: Is Buying Mortgage Points a Good Idea?\n--------------------------------------\nThere are a handful of things to consider before you decide to purchase discount points. The break-even point is a good place to start when determining whether it's worth it for you, but here are some more specific examples of when you might want to consider it.\n*   **You don't plan to sell or refinance anytime soon.** If you're settling down for a while and rates are low enough that you don't anticipate refinancing your mortgage, you may end up staying in the home long after the break-even point. In this case, it makes sense to spend a little more upfront to save in the long run.\n*   **You have the means to buy points.** Saving for a down payment while also maintaining an emergency fund and contributing toward other goals, including retirement, can be challenging. If you have the cash to spare, it's worth considering using some of it to buy down your rate.\nOn the flip side, there are some situations where it's likely not a good idea to take advantage of discount points:\n*   **You won't be in your home past the break-even point.** If you've run the numbers on how long it'll take to recoup your upfront costs and you anticipate selling the house or refinancing before that point, you'll end up spending more overall if you move forward buying points.\n*   **You don't have the means to make it happen.** Draining your savings account to buy a home can cause problems if you need to make expensive repairs, you lose your job or something else happens and you need access to an emergency fund. If you don't have enough savings to cover both your down payment and an emergency expense, consider holding off on points.\n*   **There are better ways to use the cash.** Even if you have enough money for a down payment and an emergency fund, consider other financial goals that could make a bigger impact than buying down your interest rate. Remember, it can take several years just to break even on points—if you can make better use of that money during that time, use it for that purpose instead.\nCarefully go over all of your options and consider speaking with a mortgage professional to determine if buying discount points is right for you. END