Question:

Should I buy home mortgage loan points?

Answer:

Home mortgage loan points can be paid to buy down the mortgage rate. It is recommended that you buy points on a home mortgage if you are looking to get the better rate on a permanent loan that you don't want to reconsider in several years. You need it now and you need it to be low rate, stable and for the rest of your life.

If you only plan to stay for several years, you'd better not buy mortgage loan points. Home loan points can require too much cash you need to enter your new house.

Buy home mortgage loan points or put bigger down payment?

If you don't want to refinance in a few years, you may be better off buying points to shave off the rate; home loan points are tax deductible on a large scale and if you are buying mortgage points towards a house purchase you get them deducted in the same year. However, if you are buying home mortgage loan points on a refinance, you will receive what you paid for points in even portions throughout the lifetime of your new loan.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Common misspellings: mortage and morgage