Buying points is most valuable in high-rate environments. When rates are low, the absolute savings from points are smaller and the decision is less impactful.
In a rising rate environment, locking your rate with points protects you against future increases. In a falling rate environment, points carry the risk that you might refinance before breaking even. Patrick Kevin Fagan helps San Antonio buyers evaluate market timing.
High Rate Environment
When mortgage rates are elevated, buying points produces larger absolute savings. If the base rate is 7% and you buy it down to 6.75%, you save more in dollar terms than if the base rate were 5% bought down to 4.75%. The monthly savings are larger, and the break-even may be faster. Patrick Kevin Fagan explains how rate levels affect the point-buying decision for clients throughout San Antonio.
Low Rate Environment
In a low-rate environment, the dollar savings from points are smaller. The decision to buy points becomes more about your timeline and less about absolute savings. Points may still make sense for long-term homeowners, but the math is less compelling. Patrick Kevin Fagan helps San Antonio buyers decide when points are worth it.
Rising Rate Strategy
When rates are rising, locking with points provides protection. You lock in not just the rate but the lower payment permanently. As rates continue to rise, your decision to buy points looks increasingly smart. Patrick Kevin Fagan recommends this strategy for buyers who are concerned about rate increases in the San Antonio market.
