Should pay points to lower my interest rate?
If you plan on staying in the property for at least a few years, 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). If you only plan to stay in the property for a year or two, your
monthly savings may not be enough to recoup the cost of the discount points
that you paid up-front. Ask your lender how long it would take for your monthly
savings to recoup the costs of the discount points.