Advantages of Paying Points

• Points paid on a purchase transaction are a tax deduction in the year of the close of escrow

• Paying points can dramatically reduce the interest rate on the loan

• Lowering the rate lowers the payment, lowering the income needed to qualify

• A lower rate saves the buyer thousands of dollars over the life of the loan

• There’s never been a better time to buy down a rate

1. Historically .50 point lowered the rate by .125%
2. Now .50 point lowers the rate by nearly .20%