Is buying down the rate worth it?
Points vs Rate
Compare par, discount-point and lender-credit pricing: upfront cost, monthly savings and break-even.
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Compared with Option A over 7 yr
| Option | Rate | Upfront | P&I | Saves / mo | Break-even | Cost at horizon |
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| Option A (par) | 6.875% | $0 | $2,627.72 | $0.00 | Immediate | $184,603 |
| Option B | 6.625% | $4,000 | $2,561.24 | $66.48 | 5 yr 1 mo | $181,558 |
| Option C Lowest cost | 6.375% | $8,000 | $2,495.48 | $132.24 | 5 yr 1 mo | $178,526 |
| Option D | 7.125% | ($3,000 credit) | $2,694.87 | -$67.15 | — | $188,662 |
Cost at horizon = points paid (or credit received) + interest paid while you keep the loan. If you might refinance or sell before break-even, the lower-point option usually wins.
Enter real pricing from your Loan Estimate or rate sheet. A negative point value is a lender credit toward closing costs.