15-year mortgages already carry significantly lower rates than 30-year mortgages. Buying points on a 15-year loan produces smaller absolute savings.
30-year loans have higher base rates, so points have more impact. The break-even math still applies, but the decision framework shifts based on which term you choose. Patrick Kevin Fagan helps San Antonio buyers compare points across different loan terms.
15-Year Mortgage Points
15-year mortgages already have lower base rates, typically 0.5% to 0.75% below 30-year rates. Because the base rate is lower, the dollar savings from buying points are smaller. On a 15-year loan, the monthly payment is higher to begin with, so the payment impact of points is less noticeable. Patrick Kevin Fagan explains how points work on 15-year mortgages for San Antonio buyers.
30-Year Mortgage Points
30-year mortgages have higher base rates, so each point purchase produces larger monthly savings. The longer amortization also means more total interest savings over the life of the loan. Points on 30-year loans are generally more impactful than on 15-year loans. Patrick Kevin Fagan helps clients throughout greater San Antonio evaluate point purchases on 30-year mortgages.
Comparison and Break-Even
The break-even for points on a 15-year loan is typically shorter because the monthly payment is higher. However, the absolute savings are smaller. On a 30-year loan, the break-even is longer but the dollar savings are larger. The right choice depends on your cash flow needs and timeline. Call 210-317-6514 to compare options for your specific situation.
