Are mortgage points worth buying right now? Experts weigh in.

Mortgage rates have largely remained elevated throughout 2026, with the average rate for a 30-year mortgage hovering around 6.49%. While these rates are not fixed, individual borrowers can potentially secure lower rates through strategic actions like improving their credit score or diligently shopping among different lenders, as rates can vary considerably.

One common strategy to lower a mortgage rate is by purchasing "points." This involves paying an upfront fee in exchange for a reduced interest rate over the life of the loan, which can lead to savings on both total interest paid and monthly payments. However, this approach is not universally beneficial for all borrowers.

“

A discount point is always 1% of the loan amount, that part never changes. What changes is how much rate reduction that 1% actually buys you, and that number moves by lender, by the day, and sometimes even by loan program within the same lender. Two borrowers with identical files can get a different rate for the same point cost depending on who they ask.

Experts caution that the value of mortgage points has shifted. While the cost of a discount point remains 1% of the loan amount, the actual rate reduction it provides can differ significantly from one lender to another, and even between loan programs offered by the same lender. This variability means that two borrowers with identical financial profiles might receive different rate reductions for the same point cost, depending on the lender they choose.

In recent years, the rate reduction offered by a point has generally decreased. This trend is linked to factors like mortgage-backed security investments and inflation, which increase overall interest rate demands from investors. However, using government-backed loans, such as FHA, VA, or USDA mortgages, can sometimes offer a more substantial rate reduction for the same point cost compared to conventional loans, according to home loan experts.

“

$5,000 in points on a government loan would typically lower your interest rate more than on a conventional loan.