Buying Points in Richmond Hill: Your Mortgage Playbook

Buying a home in a coastal market means juggling more than price and rate. You also weigh flood insurance, property taxes, and how long you’ll keep the loan. So when a lender asks if you want to “buy points,” it’s fair to wonder if that cash upfront will really pay off.

You want clarity, not guesswork. This guide explains what points are, how to run the break-even math using Richmond Hill numbers, and the local factors that can tip the decision. You’ll also get a simple checklist and negotiation ideas you can use right now. Let’s dive in.

What mortgage points mean

Discount points vs lender credits

• Discount points are prepaid interest you pay at closing to lower your interest rate. One point costs 1% of your loan amount, and the rate drop per point varies by lender, commonly about 0.125% to 0.25%, but not guaranteed. CFPB’s guide to points and lender credits explains the tradeoff.
• Lender credits are the reverse. You accept a higher rate and the lender gives you a credit to reduce closing costs. The best choice depends on how long you’ll keep the loan and your cash on hand.

Origination fees are not points

Some loans include origination fees. These are charges for making the loan and do not buy down your rate. Compare your Loan Estimate carefully so you know which line items are discount points and which are other fees.

Tax basics for points

Points are generally treated as prepaid mortgage interest. If you use them to buy your principal home and you meet IRS rules, you may be able to deduct them in the year paid. For refinances, points are usually deducted over the life of the loan. Review the rules in IRS Publication 936 and talk with a tax professional.

How to decide with Richmond Hill numbers

What to request from lenders

Ask each lender for two or three side-by-side scenarios on a Loan Estimate: no points, 1 point, and 2 points. Request the exact dollar cost of each point, the projected rate for each option, the APR, and an amortization schedule. The CFPB advises comparing scenarios to see your true tradeoffs.

A simple break-even example

Here is an illustrative scenario using a representative Richmond Hill price point and current national rate context. Always use your actual lender quote.

• Home price: $430,000 (illustrative median for Richmond Hill)
• Down payment: 20% → loan amount $344,000
• Base rate example: about 6.30% for a 30-year fixed, early October 2025 national average per Freddie Mac. Rates change weekly. See the latest averages.
• Assumed reduction per 1 point: 0.25% (varies by lender)

What this means: paying $3,440 to lower the payment by about $56 per month takes roughly 62 months, or about 5.2 years, to break even. If you expect to keep the loan longer than that, buying a point can pay off. If you will sell or refinance sooner, it likely will not.

APR and why your timeline matters

APR folds points and fees into a standardized rate to help compare offers, but it assumes you keep the loan to the full term. If you expect to move or refinance before then, focus on the break-even period and total interest over your expected holding period. See the CFPB’s note on comparing APR and loan terms in its mortgage explainer.

Note: In many real-world quotes, the break-even for 1 point ranges around 4 to 8 years. If a lender offers less than a 0.25% rate drop per point, your break-even gets longer.

Local factors that shift the math

Market tempo and concessions

Whether sellers are offering concessions matters. In cooler months or higher-inventory periods, sellers may fund discount points or a temporary buydown as part of your deal. When inventory is tight, you may need to fund points yourself. Pair that with rate context: as of early October 2025, the 30-year fixed average was about 6.30% per Freddie Mac, and buyer use of points often rises when rates are higher.

Property taxes and carrying costs

In Georgia, assessed value equals 40% of fair market value, and Bryan County adopted a 2025 millage rate of 5.770 mills. Review how taxes are calculated on the county site to estimate your monthly budget before deciding to spend more cash at closing. Bryan County’s property tax page outlines these basics.

Flood and wind insurance

Parts of Richmond Hill are subject to coastal storm and flood risk. If a property lies in a Special Flood Hazard Area, you will likely need flood insurance through the NFIP or a private carrier. Industry summaries show county-level NFIP averages near about $1,200 per year, but actual premiums vary widely by property. Check FEMA’s Flood Map Service Center and get a property-specific quote before deciding how much cash to tie up in points.

Military moves and hold period

Richmond Hill is a popular home base for people commuting to Fort Stewart and Hunter Army Airfield. If a potential PCS or job change could have you moving in 3 to 4 years, buying points often will not pay off before you sell. When in doubt, match the decision to your most likely holding period.

When buying points makes sense

• You will keep the mortgage beyond the break-even. This is the most important factor.
• You have ample cash after closing. Keep reserves for emergencies, insurance, and maintenance.
• You value long-term savings over liquidity. Lower interest costs can beat parking that cash elsewhere for conservative savers.
• You may itemize and meet IRS rules. Points used to purchase your main home may be deductible in the year paid. Review IRS Pub. 936.

When points may not be smart

• You expect to sell or refinance before break-even. Common for short-term assignments or planned refi.
• You need cash for immediate costs. Flood or wind insurance, deductibles, repairs, or elevation work can be material on the coast.
• You can negotiate concessions instead. Seller-paid points or a temporary buydown may deliver payment relief without draining your cash.

Alternatives and negotiation plays

• Ask for seller-paid points. Many buyers get permanent buydowns funded by the seller. Program rules apply, and VA loans have specific concession limits. See an overview of VA concession rules from The Military Wallet.
• Consider a temporary buydown. A 2-1 or 3-2-1 buydown reduces payments for the first years and is often paid by a seller or builder. It can be a good bridge if you expect lower rates later. The Washington Post explains common buydown structures.
• Use lender credits strategically. If cash is tight, a slightly higher rate with a lender credit can preserve reserves for insurance and maintenance.

Ask-your-lender checklist

Bring this list to your mortgage conversations:

• Two or more Loan Estimates: zero points, 1 point, and 2 points.
• The cost per point, the exact rate for each option, and the APR for each scenario.
• An amortization schedule or totals for interest paid over 5, 7, 10, and 30 years.
• How points will appear on your Closing Disclosure and whether any are seller-paid.
• Whether the lender will issue Form 1098 showing points, and how that interacts with your tax filing. See the CFPB’s overview on comparing options.

Richmond Hill example: why the 430k price point

Local trackers often show median values for Richmond Hill in the low to mid 400s, which is why we used $430,000 for the example. You can browse county-level context on ATTOM’s Richmond Hill page for a high-level view of pricing ranges and taxes, then apply your own lender quote to the break-even math. Review the Richmond Hill summary, then plug in your numbers.

Ready to run your exact numbers, or want help negotiating seller-paid points or a temporary buydown on the right home? Reach out to The Oliver Group for local, strategy-first guidance tailored to Richmond Hill and the coastal market.

FAQs

What are mortgage discount points and how do they work?

• Discount points are prepaid interest you pay at closing to lower your rate, typically trading upfront cash for a smaller monthly payment; see the CFPB’s points explainer.

How do I calculate the break-even on buying points?

• Divide the dollar cost of the points by the monthly payment reduction to get months to break even, then compare that to how long you expect to keep the loan.

Are points tax deductible on a Richmond Hill home purchase?

• Points used to buy your main home may be deductible in the year paid if IRS tests are met; see IRS Pub. 936 and consult your tax advisor.

Can a Richmond Hill seller pay my discount points?

• Yes, seller-paid points are common in some deals, subject to loan program rules and local negotiation; VA loans have specific concession limits explained by The Military Wallet.

Do flood insurance costs change whether I should buy points?

• Yes, higher expected flood or wind premiums and deductibles reduce the cash you can comfortably spend on points; check FEMA’s Flood Map Service Center and get a property-specific quote.

Is APR the best way to compare loans when considering points?

• APR helps compare offers that include points and fees but assumes you keep the loan for the full term, so also run a break-even and 5 to 10-year interest comparisons using your expected timeline.