Should You Buy
Mortgage Points?
Paying discount points upfront can lower your rate and save money over time — but only if you stay long enough. Here's the real math for El Paso buyers.
Break-Even Example: El Paso $220K Home
When Points Don't Make Sense
Fort Bliss military buyers on a 2–3 year PCS cycle are typically better off skipping points and keeping cash for the next move. First-time buyers with limited savings may also benefit from keeping that money liquid rather than paying it upfront. ProGen helps you run the numbers before you commit.
Frequently Asked Questions
What are mortgage points?
One mortgage point equals 1% of your loan amount, paid upfront at closing to reduce your interest rate. On a $220,000 loan, one point costs $2,200 and typically reduces your rate by 0.25%.
Are mortgage points worth it in El Paso's market?
It depends on how long you plan to stay. If you'll be in the home more than 5 years, points often pay off. If you might move sooner — common with Fort Bliss military buyers — skip the points.
Can I deduct mortgage points on my Texas taxes?
Texas has no state income tax, so there's no state deduction. However, mortgage points paid on a primary residence purchase are generally deductible on your federal tax return in the year paid.
How do I know how many points to buy?
Calculate your break-even: divide the cost of points by your monthly savings. If you'll own the home past that break-even date, buying points makes financial sense.
Can I negotiate mortgage points with my lender?
Yes. Some lenders offer no-point loans at a higher rate, or will allow you to pay points for a lower rate. ProGen can refer you to multiple El Paso lenders to compare offers.
ProGen Real Estate · Josue R. Jimenez, Licensed Texas Real Estate Broker · TREC #619091 · (915) 691-1082