The most critical factor in deciding to buy points is your —the time it takes for your monthly interest savings to equal the upfront cost of the points.
: You can generally only deduct interest (including points) on the first $750,000 of mortgage debt ($375,000 if married filing separately). buying points on mortgage
: If you think you'll refinance soon because market rates are falling, paying for a permanent buydown now is a wasted expense. The most critical factor in deciding to buy
: If the break-even is long (e.g., 8+ years), you might see a better return by investing that cash in a high-yield savings account or a 401(k). Key Considerations for 2026 000 of mortgage debt ($375