You can buy custom point amounts ranging from fractions of a point to multiple points. Rate reduction scales roughly linearly with the amount you purchase.
Most lenders allow point purchases in 0.125 or 0.25 increments. The rate reduction is typically proportional: buying 0.5 points gives roughly half the rate reduction of 1 point. Patrick Kevin Fagan helps San Antonio buyers find the optimal point amount for their specific situation.
Available Increments
Most lenders offer point purchases from 0.25 points up to 2 or 3 points. Common increments include 0.25, 0.50, 0.75, 1.0, 1.5, and 2.0 points. The exact increments depend on the lender's rate sheet. Some lenders allow custom amounts like 0.375 or 0.625 points. Patrick Kevin Fagan can help you find lenders that offer the specific increment you need.
Rate Reduction Scaling
Rate reduction from points is roughly linear. If 1 point reduces your rate by 0.25%, then 0.5 points typically reduces it by about 0.125%. The relationship is not perfectly linear at extreme amounts due to lender pricing adjustments, but it is close enough for planning purposes. Patrick Kevin Fagan can show you the exact rate reduction for each point level using current lender pricing.
Lender Options
Different lenders have different point pricing structures. Some offer very granular point increments while others offer only whole or half points. Shopping multiple lenders helps you find the exact point amount that matches your break-even target. Call 210-317-6514 to discuss custom point amounts for your home purchase or refinance.
