It depends on your particular situation. Three major factors should be considered when deciding whether to pay points:

  1. How much you can afford to pay upfront?
  2. How long do you expect to make payments on your mortgage?
  3. What is the length of your loan, and how long do you plan to live in the home?

Many people looking for a long-term mortgage opt to pay points to ease their monthly payments. People looking at a mortgage with a shorter term or looking to stay in the home for a shorter period of time often opt to make a larger down payment instead of paying points.