 TITLE: How Do Mortgage Points Work? CONTENT: Should I Buy Mortgage Points?\n-----------------------------\nMortgage points may not be right for every homebuyer. Figuring out the break-even point is a good start, but there's more to consider before buying points. For example, you'll need to come up with the money to pay for the points.\nAlthough a point generally lowers your interest rate by 0.25%, the reduction per point can vary depending on the lender, type of loan and market conditions. Make sure to run the numbers that apply to the specific mortgage you're considering.\nEven when you plan to pay for points, you should still get competing mortgage offers to see which rate and terms are best. Paying for points from one lender could decrease your rate, for example, but it could still end up higher than a competitor's offer.\nYou may find that the value of each point from the same lender changes as you compare types of loans. Additionally, if you're considering an adjustable rate mortgage, look to see if the lender will continue to apply the interest rate reduction after your initial fixed-rate period ends.\nAll that said, the simplest and easiest solution may be to simply put money toward a bigger down payment. END