Should I pay points to lower the rate?

This tool helps you determine whether paying additional charges for a specific interest rate (or discount points) in exchange for a lower interest rate is a good deal. The longer you expect to be in the home, the greater the advantage of paying points to lower your loan's interest rate. On the other hand, paying points may be disadvantageous if you intend to sell the home, refinance, or pay off the loan in the near future.