When do mortgage points actually make sense?

Mortgage points make the most sense for a buyer who plans to keep their loan long enough to recover the upfront cost through a lower monthly payment. Someone likely to sell or refinance within a few years usually will not reach that break-even point, which means the points end up costing more than they save. A larger loan amount also makes points more attractive, since the upfront cost and the monthly savings both scale with the loan size. A lender can run the break-even math on a specific quote before a buyer decides whether points are worth paying.