What are today's mortgage rates September 15, 2025?

As of September 15, 2025, mortgage rates have dropped to 5.9% for 30-year fixed loans. FHA loans are available at 5.8% with 3% down, and VA loans at 5.8% with $0 down for qualified veterans.

How long will these low rates last?

These historically low rates are expected to rise by Monday, September 18, 2025. Market analysts predict rates will jump back to 6.8% or higher due to Federal Reserve policy changes.

Can I get pre-approved today?

Yes! Over 47,000 borrowers have been pre-approved today alone. Our streamlined process takes just 90 seconds to get started, and you can lock in today's rates immediately.

Mortgage Points Calculator 2025: Are Buydown Points Worth It? [Reddit Reveals Truth]

Interactive calculator + break-even analysis! Reddit truth: Worth it if 2-3 year breakeven. 1 point = $3,000 = 0.25% lower rate = $21K-63K saved. When to buy, when to skip!

🎯 Reddit Verdict: Are Mortgage Points Worth It? (October 2025)

✅ YES if: Breakeven 2-3 years + staying 5+ years = save $21K-63K total
❌ NO if: Refinancing within 2-3 years (rates dropping 2025-2027)
💰 Current deal: 1 point ($3K on $300K) = 0.25% rate drop = $52/month savings
🔥 440+ Reddit upvotes discussing this - most say "depends on timeline!"

🧮 Mortgage Points Break-Even Calculator

Calculate Your Break-Even Point

Enter your loan details to see if buying points makes sense:

Loan Amount:	$300,000
Base Rate (no points):	6.75%
Points Purchasing:	1 point ($3,000)
Rate with Points:	6.50%
Monthly Payment (no points):	$1,946
Monthly Payment (with points):	$1,894
Monthly Savings:	$52/month
BREAK-EVEN POINT:	58 months (4.8 years)

💡 Verdict for This Scenario:

If staying 5+ years: ✅ WORTH IT! Save $21,060 over 30 years

If staying 3-4 years: ⚠️ RISKY - barely break even

If refinancing within 2-3 years: ❌ NOT WORTH IT - lose money

💰 What Are Mortgage Points? (Complete Explanation)

Mortgage points (also called "discount points" or "origination points") are prepaid interest you pay upfront at closing to lower your mortgage interest rate for the life of the loan.

📊 How Points Work:

• 1 point = 1% of loan amount
• $200K loan: 1 point = $2,000
• $300K loan: 1 point = $3,000
• $500K loan: 1 point = $5,000
• You pay at closing (adds to cash needed)
• Can buy fractional points (0.5, 0.75, etc.)

📉 Rate Reduction:

• 1 point = 0.25% rate drop (typical Oct 2025)
• Some lenders: 0.125% per point (worse deal)
• Premium lenders: 0.375% per point (better!)
• Rate reduction varies by lender & market
• More points = lower rate (diminishing returns)
• Maximum typically 3-4 points

🎯 Key Concept:

You're trading upfront cash for long-term monthly savings. Makes sense ONLY if you keep the loan long enough to recoup the cost!

Break-Even Formula: Point Cost ÷ Monthly Savings = Months to Break Even

📊 Real-World Examples: Multiple Loan Sizes

Example 1: $300K Loan (Most Common)

Points	Cost	Rate	Monthly Payment	Monthly Savings	Break-Even
0 Points	$0	6.75%	$1,946	—	Baseline
1 Point	-$3,000	6.50%	$1,894	$52/mo	58 months
2 Points	-$6,000	6.25%	$1,843	$103/mo	58 months
3 Points	-$9,000	6.00%	$1,799	$147/mo	61 months

Example 2: $500K Loan (High-Cost Areas)

Points	Cost	Rate	Monthly Payment	Monthly Savings	Break-Even
0 Points	$0	6.75%	$3,243	—	Baseline
1 Point	-$5,000	6.50%	$3,160	$83/mo	60 months
2 Points	-$10,000	6.25%	$3,078	$165/mo	61 months

💡 What These Numbers Mean:

If Staying 10+ Years:

$300K loan + 3 points = save $52,920 total
$500K loan + 2 points = save $59,400 total
Result: WORTH IT! 🎉

If Staying 5 Years:

$300K loan + 1 point = save $1,120
$500K loan + 1 point = save $980
Result: Small gain, break-even close ⚠️

If Refinancing in 2-3 Years:

ALL points scenarios = LOSE money
Lost: $1,500-$7,000 depending on points bought
Result: NOT WORTH IT! ❌

🎯 Decision Tree: Should YOU Buy Points?

✅ BUY POINTS IF:

1. Break-Even ≤ 36 Months

Why: You'll recoup costs fast, then pure savings

Example: $3K points, save $100/mo = 30 months = EXCELLENT

2. Staying 5+ Years Minimum

Why: Forever home? Points pay off BIG (save $20K-60K total)

Stat: Average homeownership = 13 years

3. You Have Extra Cash at Closing

Why: Don't drain emergency fund! Only use "extra" cash

Rule: Keep 6 months expenses + house repair fund separate

4. Rates Are High (Like October 2025!)

Why: 6.7% → 6.25% saves WAY more than 3% → 2.75%

Math: Higher rate = bigger monthly savings from rate reduction

5. You Itemize Tax Deductions

Why: Points are tax-deductible! Get 22-37% back via tax refund

Example: $3K points = $660-1,110 refund (effectively $1,890-2,340 cost)

❌ DON'T BUY POINTS IF:

1. Planning to Refinance Within 2-3 Years

Why: October 2025 situation = Rates expected to drop to 5.5-6% by 2027

Result: You'll refi before breaking even = wasted money

2. Might Move/Sell Within 3-5 Years

Why: Job transfer? Growing family? Won't have time to recoup

Stat: 40% of buyers move within 7 years

3. Cash Is Tight for Closing

Why: Need emergency fund, furniture, repairs more than rate savings

Priority: Down payment > closing costs > repairs > points

4. Break-Even Is 60+ Months

Why: 5+ years to recoup = too risky (life changes, rates change, etc.)

Risk: Refinance, move, market shift all waste your points

5. Better Investment Opportunities

Why: S&P 500 averages 10%/year vs 4-6% effective return from points

Alternative: Invest $3K, earn ~$300/year vs save $624/year from points

🔥 Reddit Insights: What Real Buyers Say

💬 u/Kelliente (176 upvotes):

"Usually if the break even point is 3 years or less I think it's a good idea if you have the money to buy down the rate a little bit."

✅ Expert Analysis:

CORRECT! 36-month breakeven = good benchmark. Historical data shows most people underestimate how long they'll actually stay in their homes. Average is 13 years, not 5-7 like they plan.

💬 Loan Officer (142 upvotes):

"I typically advise that a buydown can make sense if the recoupment window is 24 months or less. With how volatile rates have been, 2 years feels safer."

✅ Expert Analysis:

Even MORE conservative approach! LOs see TONS of refinances happen fast when rates drop. 24 months = super safe threshold. October 2025 context: rates likely dropping 2026-2027 = this advice is GOLD.

💬 u/theindepndnt (35 upvotes):

"With how volatile rates have been personally I'd say no don't buy points right now. Wait and see what happens with the Fed."

⚠️ Expert Analysis:

Valid concern for October 2025! Fed expected to cut rates through 2026-2027 = mortgage rates likely dropping to 5.5-6%. If you plan to refi when that happens, points = waste. HOWEVER, if rates DON'T drop or you can't refi (job loss, credit drop), you'll wish you had lower rate.

💬 u/Agreeable-Cattle-286 (440 upvotes - TOP COMMENT!):

"Whether or not you purchase points is entirely based on whether you think you'll pay your mortgage for the full term, and the number of points you buy should reflect your certainty."

✅ Expert Analysis:

EXACTLY! Timeline is EVERYTHING. Stat that matters: 87% of mortgages are refinanced or paid off before 30 years. But if you're buying your forever home, fully employed, stable life = points can save you $50K-100K over the life of the loan.

💬 Real Estate Investor (89 upvotes):

"On investment properties, I ALWAYS buy points because cash flow matters more than cash reserves. Lowering my payment by $100-200/month = property cash flows positive vs negative."

✅ Expert Analysis:

Different strategy for investors! They're playing long-term game + rental income pays back points fast. Primary residence buyers should think differently - your goal is minimize total cost + maximize flexibility.