Discount points, lender credits and buydowns, weighed on your own numbers
Points or a bigger down payment
Point made
Points lower the rate; a larger down payment lowers the balance and may remove or reduce mortgage insurance. Compare both uses of the same cash over the time you expect to keep the loan. Ask the lender for two Loan Estimates, one each way, to compare.
Last reviewed against the primary sources listed below.
Ask for two estimates
- One with points.
- One with the same cash added to the down payment.
Points and credits, answered
Is it better to buy points or put more down?
Compare both with Loan Estimates over your expected stay.
Can more down payment remove mortgage insurance?
It can reduce or remove it on some loans.