What should I do instead of buying points?

Putting extra cash toward a larger down payment, covering other closing costs, or simply keeping it as a reserve after closing are all alternatives to buying mortgage points, and which makes sense depends on how long a buyer plans to keep the loan before selling or refinancing. Points typically only pay off with enough time for the lower rate to offset their upfront cost. Joel Boss runs that comparison with a buyer's lender before recommending either path.