It depends on your particular situation. Three major factors should be considered when deciding whether to pay points:
- How much you can afford to pay upfront?
- How long do you expect to make payments on your mortgage?
- 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.