Here’s a little trick I learned when shopping for a mortgage: sometimes you can “buy down” your interest rate by paying what they call discount points at closing. Basically, you pay more upfront to get a lower rate over the life of the loan. It sounds kinda weird at first, but if you plan to stay in your house for a long time, it can actually save you a decent chunk of change.
I did the math on mine and realized if I stayed put for at least 5 years, the upfront cost would pay off. But if you’re not sure how long you’ll be around, or if cash is tight, it might not make sense. It’s one of those things that seems like a no-brainer until you look at your own situation.
Anyone else tried this or have tips on figuring out if it’s worth it? Or maybe horror stories where it backfired?