Lender wants me to buy points to close a loan

Paying points to get a better interest rate is simple math, and two questions. The first question is answered by taking whatever the up-front additional costs of the points, and divide it by the monthly payments savings. This will give you your 'breakeven' period on the cost. Let us say that works out to be 5-years. If you in the home (or loan) less than 5-years, it clearly doesn't make sense. If you are thinking you'll be in the home a lot longer than the breakeven period, it can begive to make a lot of sense. For question two, do you have the additional money to spend today for the points, or could you use that money for something better, like pay off high interest credit cards? I lend in MN WI IA SD and ND. Find me at JoeMetzler.com - Cambria mortgage, NMLS 274132