What is better? Paying more points now and better rates or no points and worse rates?

It only makes sense to buy points if you are absolutely sure you will stay in the house for an extended period of time. If there is any chance your family will move in the first 5 to 7 years you will be wasting money on the points. You should be able to get rates in the 4.5% range now without points so without knowing more details on your situation I would lean towards going without the points and getting into a low fixed rate.

With a few basic details it would be easy to determine the break even mark for paying points. Based on the break even point and how long you plan to stay in the house, you can then determine if it is worth the added upfront cost.

I second CO Lender's answer. No need to pay points these days.

Whatever you decide, I would be more than happy to provide FREE quotes to you on both scenarios. You will find our rates blow away the competition. We are direct lenders licensed nationally. Please send an email to adennie@fmbranch.com. Thank you.

The same dollar amount does not buy the rate down the same. All lenders have different rates and discount-points. If it makes sense for you, then do it. Usually, if it's a small loan amount, there isn't much benefit. The higher the loan amount, the more sense it may make. .... Happy funding, Rudi