Should I pay points to lower my interest rate?

Paying discount points to lower the loan's interest rate can be a good way to lower your required monthly loan payment, and possibly increase the loan amount that you can afford to borrow. Whether paying points to lower the long-term rate makes sense will depend on the details of your situation. Often, if you stay in the property for only a year or two, your monthly savings may not be enough to recoup the cost of the discount points that you paid up front.

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