With Colorado home values and interest rates increasing, home buyers are looking for ways to save money any way they can. An attractive option for many homebuyers is buying discount points, also called “buying down the loan.” When doing this, the buyer will pay an upfront fee in order to lower their interest rate over the length of the loan.

Is the additional cash upfront worth having a lower interest rate? Let’s take a closer look at what discount points are and if they’re a good idea for you.