Recently built a home (closed summer 2022) and we bought down points. The first “point” (which was a full quarter point increment) cost over $10,000. On a whim I asked the loan officer how much another quarter point would cost. Answer: $300. Not $3,000….”$300”. I was shocked. Never would have guessed that in a million years. Of course we took advantage of that.

My point is that second buy down was a mere fraction of what the first one was for the same buy down effectiveness (.25%). I don’t plan on ever moving again but if I do I’ll definitely ask about buying down points and specifically ask about more than one buy-down increment.

One more thing on buy downs: loan officer said on average that you make back your buy down costs in about 4 yrs. If you do have the ability to buy down points and you’ll be in your home generally more than 4 yrs, you can save a ton of money in the long run.

I have no idea why the second buy down was so small or how many companies do that but it can’t hurt to ask.

Good luck to everyone out there.