Mortgage break-even point is crucial
Experts call it the time when amassed monthly savings exceed the amount paid in points.
Bob Walters is willing to shell out cash to get a rock-bottom mortgage interest rate. That’s why he always pays discount points.
“I have never, in my history of being in the mortgage business, gotten a mortgage when I didn’t pay points,” says Walters, the chief economist for Quicken Loans. “If you know you’re going to be in a mortgage four or five years, it always makes sense.”