Mortgage Points for Idaho Home Buyers: What You Need to Know

Mortgage Points for Idaho Home Buyers: What You Need to Know

When shopping for a mortgage in Idaho - whether you’re eyeing Boise, Meridian, Nampa, or Caldwell - you’ll likely hear about mortgage points. But what are they? And should you buy them?

Let's break it down in simple, Idaho-friendly terms.

🎯 What Are Mortgage Points?

Mortgage points - also called discount points - are fees paid at closing to reduce your mortgage interest rate. Each point costs 1% of your loan amount and typically reduces your rate by 0.25%.

For example, if you're buying a $300,000 home, one mortgage point would cost $3,000 and could lower your interest rate from 7.00% to 6.75%.

📉 Why Mortgage Points Matter in Idaho

For Idaho home buyers, paying mortgage points can:

• Lower your monthly payment

• Reduce total interest paid over time

• Offer long-term savings if you keep the home for years

It's like prepaying some interest to get a better deal down the road.

🧠 When Do Mortgage Points Make Sense?

Buying mortgage points is a good idea if:

• You plan to stay in the home at least 5+ years

• You want to lock in a lower rate long-term

• You can afford the upfront cost at closing

If you’re only living in the home a short time, the savings may not be worth the cost.

🧮 Mortgage Points in Action (Idaho Example)

Buying a $400,000 home in Meridian?

That's $67/month saved, and over 30 years you save $24,200 - all from one point.

Where is the break even?  Take $67 and divide into $4000, that equals 59.70, or it takes an investment of $4000 to break even in 60 months, or 5 years.

🤔 Should You Buy Points?

Ask yourself:

• How long will I keep this mortgage?

• Do I have the cash to pay for points upfront?

• What's the break-even point?

A local Idaho lender can run the numbers for your unique situation.

💬 Final Thoughts for Idaho Home Buyers

Mortgage points can be a powerful savings tool - but only if they fit your plans and budget. If you're buying in Idaho and want to explore your best mortgage options, let's run the numbers together.

Want to know if mortgage points are right for you as an Idaho home buyer? Let's talk.