Should I buy points to lower my rate or keep the cash for a bigger down payment?

It depends on your time horizon and cash position. Buying discount points costs roughly 1% of the loan per point for a modest permanent rate reduction; it pays off only if you keep the loan long enough to recoup the upfront cost, typically several years. A larger down payment reduces your loan balance, may help you avoid or shrink PMI, and lowers your total interest. If you're cash-tight, points that shrink the payment might matter more month to month; if you'll move or refinance soon, points rarely pay back. In a high-rate 2026 market, also weigh whether a temporary seller-paid buydown gets you similar relief for free. Run the break-even before deciding.