Your Guide to Understanding Mortgage Points in Santa Clarita

 

Your Guide to Understanding Mortgage Points in Santa Clarita

 

With rising interest rates, many Santa Clarita homebuyers are asking about mortgage points. But what are they—and are they worth it?

What Are Mortgage Points?

Mortgage points (also called discount points) are fees paid to the lender at closing in exchange for a lower interest rate.

• 1 Point = 1% of your loan amount.
• Buying points is often called “buying down the rate.”

Should You Buy Points?

YES—If You:

• Plan to live in the home long-term (typically 5+ years)
• Want to save on interest over time

NO—If You:

• Need to keep more cash available at closing
• Plan to move or refinance soon

Example:

Let’s say you’re buying a $700,000 home in Santa Clarita with 20% down:

• Loan = $560,000
• 1 point = $5,600
• Buying 1 point may lower your rate by ~0.25% depending on the lender

Over time, this could save you thousands—but only if you stay in the home long enough.

Confused about whether points are right for you? Let’s run the numbers together based on your goals.

Ready to make your next move in Santa Clarita?

Written by Tami Cicerello, REALTOR® and local real estate expert serving Santa Clarita, Valencia, Saugus, Newhall, Stevenson Ranch, Canyon Country and Castaic.