Allen Markel, REALTOR® · Texas Premier Realty

Buying

Points vs. down payment

One pile of extra cash — buy the rate down or put more down? The payment each way, and which wins for how long you'll stay.

A typical recent 30-year rate. Edit to your lender's quote.

Closing-day money beyond your planned down payment — the pile you could point at either lever.

Same cash, two ways to spend it

$99 /mo between the two paths

A · Toward more down (7.5% down)$2,385/mo
B · Toward points (2.63 pts → 6.03%)$2,286/mo
Planned down payment (5%)
$20,000
Extra cash in play
$10,000
Loan: more-down path vs. points path
$370,000 · $380,000

Staying ~8+ years → points win by $99/mo. Moving or refinancing sooner → more down wins — that cash comes back as equity when you sell; money spent on points doesn’t.

Neither payment includes PMI. Under 20% down, conventional loans carry it — and more down means cheaper PMI, a quiet extra point for the down-payment path. Both payments are 30-year fixed principal & interest.

Live listings across our six counties.

We’re not a lender. This uses the market-typical ≈0.25% rate cut per point (capped at 3) — real point pricing changes daily and varies by lender. Seller concessions can pay for points, too — your down payment they can’t touch. Get the real buy-down table from your lender before deciding; we’ll introduce you below.

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These are the lenders Allen works with. For any lender you’d like to talk to, tap Make introduction — we’ll make the introduction for you.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender or loan originator. He does not quote rates or terms and does not decide whether you qualify — only a lender can do that. Introductions are a courtesy; you choose who to work with.

Numbers raising questions? Walk through them with a person.

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