Here’s what you need to know about buying down your interest rate.

What are interest rate points, and should you pay for them? Essentially, interest rate points allow you to pay money upfront to lower your mortgage interest rate. The more money you pay upfront, the lower your monthly payment will be. However, is this deal worth it? Generally, points are only worth it if you keep your mortgage for a long period of time. If you plan on refinancing or moving within a few years of signing your mortgage, points probably aren’t worth it.

If you have questions about whether or not points are worth it in your situation, please call or email me. I am always willing to help!