: If you think you'll refinance soon because market rates are falling, paying for a permanent buydown now is a wasted expense.
: To deduct points, your total itemized deductions must exceed the standard deduction ($15,750 for single filers; $31,500 for married filing jointly in 2025). buying points on mortgage
Buying mortgage points—also known as —is a strategy where you pay an upfront fee at closing to "buy down" your interest rate. This trade-off trades current cash for long-term savings, potentially reducing your monthly payments and total interest over the life of the loan. How Mortgage Points Work : If you think you'll refinance soon because
: You can often buy fractional points (e.g., 0.5 points) or multiple points, usually capped at three or four by most lenders. The Break-Even Calculation 750 for single filers