 TITLE: How Do Mortgage Points Work? CONTENT: What Are the Benefits of Mortgage Points?\n-----------------------------------------\nThe main benefit of buying mortgage points is reducing your loan's interest rate and thus the amount you'll pay over the life of the loan. Generally, each point lowers your interest rate by 0.25%, although the exact amount can vary.\nLowering your mortgage interest rate can decrease your monthly payments, making it easier to manage your budget. Additionally, the cost of the points could be an itemizable tax deduction because you're prepaying mortgage interest. If you meet IRS requirements, you could take the entire deduction during the year you paid the points. Otherwise, you may be able to claim the deduction over the lifetime of your loan. END