How long will you own the home and is it a rental, primary or second home?

Read Thomas J. Nelson, Realtor, CRS answer.

I don't because they're not.

George Souto just wrote a good post on this: http://activerain.com/blogsview/5065824/why-do-i-have-to-pay-points-

-Kasey

it depends on how long you'll be living in the home....if it's a short stay, it may not be worth it.... a discussion to have with the lender....

I don't, I leave that to the licensed mortgage broker.

I don't...it's up to my clients and their lenders to do the analysis as to the value. And yet another question that has been asked and answered and asked and answered more times than I can count. And guess what... my answer hasn't changed.

This is a great question for a lender

Your lender will show you the break even point if you don't know how to figure it.

I don't.  I leave that up to the client and their loan officer.

HP 12C Financial Calculator.

I don't think they are worth it at any time.

I find a spreadsheet helps, best to know how long you will be staying too.

Crunch some numbers.

You make a chart, how much the loan payment is with and without the points. Divide the points by monthly saving and that is how many months you must live there, most often it is 5 to 7 years anyway to see a savings of paying points

Compare with the alternatives and consider what is best for your prospective mortgage borrower.

If you get the seller to pay the buyers points it's worth it.

I do not get involved in the loan process.

Thomas Nelson has the basics covered. Discount points are often not worth the upfront investment!

For yourself of for your client? It depends how long you plan to own that property. 

Unless it's my own loan, I don't determine such things.  There are individual factors to consider and it should be a discussion between borrower and mortgage professional.  

Discusssion with the lender.

If average person owns a house seven years, start with that number. 

What month does the difference between zero points and difference of payment balance? If it recoups on month 36, then great. If on month 80 not a good idea as is no savings

Great questions to be addressed with a well qualifed lender.

I don't

Brian Burkhalter Only the lender and the buyer can decide their value.

up to the buyer

Hi Brian,
Do you understand what "points" are?   It means you are paying an upfront fee to get a reduced interest rate for the life of the loan.  This, in return, reduces your monthly payment.    The longer you stay in the home, the better.   It is an easy calculation to determine the breakeven point, based on the monthly savings.

Do your breakeven analysis based on the number of anticipated years of ownership

Others have answered.

1 how bad do I want this loan?

2 if I really want it and paying the points is the only way I can get it then I guess the points were worth it.

Thomas J. Nelson, Realtor, CRS  has your answer.

Brian Burkhalter - just see when the buyer breaks even...

You ask the lender to pay for points, closing cost, and appraiser.