Should you pay for mortgage points?
Mortgage points are fees you can pay your lender at closing to lower your interest rate.
One point costs 1 percent of the mortgage amount. Each point could lower your interest rate by 1/8 to 1/4 of 1 percent.
Compare your payments with and without points and figure out when you would break even.
If you would live in your house after the break-even point, you could save a lot of money with points.
But if you would move before breaking even, making a large down payment to avoid paying for private mortgage insurance might be a wiser move.
Do the math to figure out what makes sense for you.