Mortgage points allow home buyers to pay an upfront fee in exchange for a lower mortgage rate. It's an option for buyers looking to lower monthly mortgage costs and one more borrowers are opting to use. In fact, a recent analysis found that nearly 45 percent of conventional borrowers opted to buy points in 2022. That's a jump from 29.6 in 2021 – and an even bigger increase over 2019 when just 27.3 percent of buyers purchased points. The reason behind the increase is fairly easy to see, as mortgage rates rose early in 2022 after hovering just above historic lows for several years. As mortgage rates increased, buyers began looking for ways to cut costs, including points. But they may not be the right strategy for every buyer. There are several things to consider, including how long you intend to stay in the house you're buying.
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