The most critical part of this decision is the break-even analysis—how many months it takes for the monthly savings to cover the upfront cost. The Formula
: You can usually buy fractional points (e.g., 0.5 points) or multiple points (e.g., 2.0 points). Calculating the "Break-Even" Point cost to buy down points on a mortgage
: Each point is equal to 1% of your principal loan. The most critical part of this decision is