Are mortgage points worth buying right now? Here's what 3 experts think.
Summary
Mortgage rates have stayed near 6.5% in 2026, but buyers can lower their rates through options like buying mortgage points. Mortgage points mean paying extra money upfront to get a slightly lower rate and smaller monthly payments. Experts say buying points can be a good choice if you plan to live in the home for many years.Key Facts
- The average 30-year mortgage rate is about 6.49% in 2026.
- Mortgage points cost 1% of the loan amount per point and reduce the interest rate a little.
- The amount a point reduces the rate varies by lender and is generally smaller than in the past.
- Inflation and mortgage-backed security investments have caused higher interest rates and less benefit from points.
- Government-backed loans (like FHA, VA, USDA) typically get bigger rate reductions from points than conventional loans.
- Buying points is usually smart if you will stay in the home long enough to save more in monthly payments than the upfront cost.
- The breakeven point tells you how many months it will take to recover the cost of the mortgage points by those monthly savings.
- The average homeowner stays about 12 years in their home, making points worth considering for many buyers.
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