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Thinking about paying points to lower your mortgage interest rate? Don’t do it Paying points costs you thousands right now for a lower rate over 30 years. The break-even point to recoup that cost is typically 3-5 years vs paying no points. We are in a rate-cutting cycle and you will most likely refinance into a lower rate before you reach that break-even point. Don’t pay the bank for a 30-year benefit you’ll only use for a couple of years. Focus on getting the best rate without paying points. |
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