"Lowering Monthly Mortgage Costs: Is the Points Strategy Right for You?"

Homebuyers are turning to purchasing mortgage points as a way to defray higher monthly payments amid high interest rates. Mortgage points let buyers pay an upfront fee to lower the interest rate on their loans. Almost 45% of conventional primary home borrowers bought mortgage points in 2022 to reduce their monthly mortgage payments, a trend that has continued into this year. However, home buyers should also weigh other factors before buying mortgage points, such as their timeline for living in the home and other alternatives like increasing the size of their down payment.