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This approach allows you to put money upfront to pay less in interest over time.
Is this still a good strategy?
Mortgage and real estateexperts weighed in.
What Savings Do Discount Points Bring?
This gets applied to the rate and can add up to significant savings over time.
With that lower rate you would have a lower mortgage payment every month.
That is a great return, he said.
Another lesser-known downside is the opportunity cost, Austin said.
Instead, the money spent on points could be used for higher-return investments or emergency savings.
If youre excited to go out and negotiate discount points now on a loan, Grosso urged caution.
Right now we are in a high-interest rate environment and trending down.
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