Mortgage points can lower your interest rate. Here’s when they may be worth it

As you compare mortgage lenders, you’ll likely come across the phrase “buying down your rate” or the concept of lowering your rate by paying points. Both refer to the same strategy: paying extra upfront in exchange for a lower mortgage interest rate.At first glance, buying mortgage points may seem like a no-brainer, as it can potentially lower your monthly payment and save you thousands of dollars in interest over the life of the loan.