: If buying points reduces your down payment to below 20%, the resulting cost of private mortgage insurance (PMI) may exceed your interest savings.
: If you think you'll refinance soon because market rates are falling, paying for a permanent buydown now is a wasted expense. buying points on mortgage
: To deduct points, your total itemized deductions must exceed the standard deduction ($15,750 for single filers; $31,500 for married filing jointly in 2025). : If buying points reduces your down payment
: You itemize your deductions. For a primary residence, points are generally 100% tax-deductible in the year you pay them as "prepaid interest". When to Avoid Buying Points 750 for single filers