Buying Points Down

[Mike Gratzmiller]

looking for advice on Points buy down... Loan of $162,000 (SFH) is currently at 6.275. I'm being told I have the option to buy it down to 5.75. How many points would that be? Do you think it's worth the $$ to do so... approx $3,150 to make that move.

Appreciate any and all advice... I'm a first time buyer.

[Fred Helm]

Hey Mike, to answer your question, "So if you could answer what exactly a point is..."  A point is 1% of the loan amount.  So if a loan amount is $100,000.00 a point is $1000.00.