Arizona Mortgage Guide 2026 · Todd Uzzell NMLS #1525192Mortgage Points — Should You Buy
Mortgage Points — Should You Buy
Down Your Rate in Arizona?
Everything Arizona buyers and homeowners need to know — with current 2026 numbers and expert guidance from a licensed Arizona mortgage lender with 20+ years of experience.
At a Glance
| Factor | Value | Details |
|---|---|---|
| Cost per point | 1% of loan amount | On $400K loan = $4,000 |
| Rate reduction per point | ~0.25% | Varies by lender/market |
| Monthly savings (400K loan) | ~$60/month per point | At 0.25% rate drop |
| Break-even period | ~67 months (5.6 years) | $4,000 / $60 = 66.7 months |
| Best for | Long-term owners | 5+ year planned stay |
| Avoid if | Selling/refinancing soon | Under break-even = money lost |
Frequently Asked Questions
How much does 1 mortgage point reduce my rate in Arizona?
One discount point costs 1% of the loan amount and typically reduces your rate by 0.25%. On a $400,000 loan, one point costs $4,000 and might lower your rate from 6.75% to 6.50%. The exact rate reduction per point varies by lender and market conditions.
Are mortgage points tax deductible in Arizona?
Yes — discount points paid to buy a primary residence are generally deductible in the year paid if you itemize deductions. Points on a refinance must be deducted over the life of the loan. Most Arizona homeowners take the standard deduction and receive no benefit — consult a tax professional.
What is a 2-1 buydown and can I get one in Arizona?
A 2-1 buydown reduces your rate by 2% in year one and 1% in year two, then adjusts to the full rate in year three. The cost is funded upfront — often as a seller or builder concession in Arizona new construction. Todd can structure a 2-1 buydown on your purchase — call 480-330-1724.
Todd Uzzell
Licensed Arizona Mortgage Lender - Todd Uzzell NMLS #1525192 · NMLS #1525192
Starboard Financial NMLS #156931, BK-0910725. 4145 E Baseline Rd, Gilbert AZ 85234. 480-330-1724.
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