Points or No Points?

That's easy since it's a fixed loan. There are several of these calculators available. I don't know if points are still tax deductible or not

http://www.money-zine.com/calculators/mortgage-calculators/mortgage-points-calculator/

If you're planning on selling in five years, do the math and find out your break even point.

Ellen Silverman, Mortgage Broker
NMLS#60631

Mortgage interest is tax-deductible. Discount points are really just prepaid interest, so they're tax-deductible too. So the question is really, given your particular tax situation, do you want the deductions to be more concentrated in one year, or more spread out?

Bear that in mind when you run the calculators, which are usually pretty simple, and will only tell you whether you're staying in a place long enough to even consider buying your rate down.

And as flutistic mentions, there are also non-tax-deductible points (origination points) which usually aren't a good deal, so make sure you're not being offered those.

ali r.
{downtown broker}

I remember on my first mortgage I ever took I also happened to have had a windfall year and so bought points for the tax advantage. Aside from the calculators and finding the break even point, that's the only circumstance where I see them useful.

An origination charge is a fee not considered points. Usually the fee is less than$1000.00 no matter what the loan amount is.

Makes almost no difference on that mortgage amount