Buying down your rate costs money today. This finds the exact month it pays for itself — and checks that against how long you'll actually keep the loan.
1 point = 1% of the loan amount, paid upfront at closing. "How long you'll keep this loan" drives the verdict — the U.S. average tenure before moving or refinancing is often cited around 7–8 years, but use your own honest guess.
Points are an upfront fee paid to your lender in exchange for a lower interest rate. One point typically costs 1% of the loan amount.
Compare the upfront cost against your monthly savings — if you plan to stay in the home past the breakeven month, points can pay off.
No — the rate reduction per point varies by lender and market conditions. Use the actual quote from your lender for accurate numbers.