To Pay Points or Not to Pay Points—That Is the Question!

Believe it or not, the last three rate locks we’ve done have been over 7%—and that was intentional. Why? Because in certain situations, opting for a zero-point mortgage can be the smarter financial move.

By avoiding upfront points, borrowers minimize their closing costs now, keeping more cash on hand. The strategy? Take advantage of our no-cost refi option with BTB Home Loans when rates improve, securing a lower rate without extra fees down the road.

📊 Here’s an example:

Paying 1 point (or 1% of the loan amount) typically buys the rate down by 0.375%, lowering the monthly payment. However, it would take 39 months to recoup the upfront cost.

That’s why many buyers are choosing to keep more cash in their pocket now and accept a slightly higher rate—knowing they can refinance with BTB Home Loans in the future with no extra cost when rates improve.

It’s about thinking long-term—playing chess, not checkers. 🏰

Helping clients navigate these decisions builds trust and strengthens relationships. If your buyers are hesitant about today’s rates, let’s discuss strategies to help them move forward with confidence.