Are mortgage points worth buying right now? Here’s what 3 experts think.
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Aside from a small dip at the start of the year, mortgage rates have been relatively high for most of 2026, hovering around the 6.5% mark for much of that time. In fact, the average rate on 30-year mortgage loans currently sits at about 6.49%.
But those rates aren’t set in stone, and it’s possible for individual borrowers to get lower rates with a few strategic moves. Improving your credit score, for one, can help you get a lower mortgage rate, as can shopping around for your lender, since rates vary quite a bit from one company to the next.
Buying mortgage points is another popular option. With this approach, you’ll pay an upfront fee in exchange for a slightly lower mortgage rate for your entire loan term. It’s a move that helps you save on interest and reduce your monthly payment — though it’s not the right choice for every borrower. So, what do the experts have to say about whether you should buy mortgage points in this landscape?
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Are mortgage points worth buying right now? Here’s what 3 experts think.
Here’s what pros have to say about whether you should consider buying mortgage points to help reduce your rate right now.
Mortgage points cost more than they used to, so shop around.
Just like rates themselves, the rate reduction a mortgage point offers can vary widely, meaning that the amount a 0.125% reduction could cost you may also change from one lender to the next.
“A discount point is always 1% of the loan amount — that part never changes,” says David Kakish, home loan expert at Anchor Home Loans. “What changes is how much rate reduction that 1% actually buys you, and that number moves by lender, by the day, and sometimes even by loan program within the same lender. Two borrowers with identical files can get a different rate for the same point cost depending on who they ask.”
In recent years, that 1% has been buying increasingly smaller rate reductions, pros say. It has to do with mortgage-backed security investments and inflation. What it boils down to, though, is that there’s more risk, so investors who are purchasing mortgage bonds demand higher interest rates overall.
There is a way to minimize what you pay to reduce your rate, though, and that’s simply to use a government-backed loan — an FHA, VA, or USDA mortgage, for example.
“$5,000 in points on a government loan would typically lower your interest rate more than on a conventional loan,” Jordan Del Palacio, home loan specialist at Churchill Mortgage, says.
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Mortgage points can be smart if you’re planning to stay put.
Every borrower should run the numbers on their specific situation, but for the most part, buying mortgage points makes the most sense if you plan to stay in your home a while. This gives you the time to break even on the costs of the points.
Fortunately, the average homeowner stays in their house for 12 years, though in some cities it’s as long as 20 years. If you see a similarly long future in your home, then experts say buying mortgage points might be a good move.
“How long are you going to be in the mortgage or with the home?” del Palacio asks. “Typically, the longer you are going to be with the mortgage or home, the more the points make sense.”
To figure out exactly how long you need to stay put, you can calculate the breakeven point. Just take the total costs of the mortgage points and divide them by how much the rate reduction will save you each month. That will give you the number of months it takes to break even on the points.
Here’s an example: Let’s say you bought $4,000 in mortgage points, giving you a rate reduction that saves you $100 on your monthly payment. In this case, you’d break even on the points in 40 months (4,000 divided by 100). If you’re not going to be in the home that long, buying the points probably isn’t a good investment. However, if you think you will stick around for those 40 months, then points could be the right move.
If you’re worried about needing cash or the impact of rising inflation, think twice.
Inflation is currently at 4.2% — nearly double where it started in 2026 and the highest point in three years. Couple that with soaring gas prices, and the typical American household is feeling serious financial pressure.
If those conditions have you worried, then buying mortgage points may not be the move to make.
“If inflation already has someone watching their cash flow closely, spending several thousand dollars at closing to shave a little off the payment can work against them instead of for them,” Kakish says. “That money is often worth more sitting in their account the day after closing than it is locked into a rate that takes years to pay them back.”
Always look at your overall savings picture when deciding whether to buy points. If you have a flush savings account and will still have some financial cushion afterward to weather a storm, then buying them could be smart. It would even free up cash flow to help you cover today’s rising prices.
But if buying points would drain your bank account just to reduce your payment slightly each month, it may not be the right move under current conditions.
“You should only pay for points if you have the funds to do so,” says Daniel Iglesia, director of mortgage sales at Georgia’s Own Credit Union. “If it leaves you with no safety net, it makes less sense.”
The bottom line
If you do opt for points, experts say shopping around can help, as point costs can vary by lender. You should also make sure to look at each lender’s loan estimate, as some may include points automatically in their rate quotes.
“A lot of the rates people get quoted already have points baked into them, and most borrowers don’t realize that’s what they’re looking at. The rate looks attractive until you get to the loan estimate and see the cost sitting underneath it. I always tell people to ask for the rate at zero points first. That’s the only way to actually compare apples to apples,” Kakish says.
You can also work with a mortgage broker with access to a network of lenders who can help you find the one offering the best rates and lowest point costs. If you’re buying a house, asking for seller’s concessions could be an option, too. You could then use those concessions to cover closing costs or buy points — at no cost to you.
It sounds far-fetched, but with more buyers than for-sale listings in most markets, many sellers are having to negotiate these days. Redfin research shows that nearly half of all sellers gave concessions in May — the highest May on record.
“Since the market shifted to a seller’s market, you can often negotiate for the seller to contribute toward your closing costs,” Iglesia says.
