Will mark the ! when is it not a good idea to purchase discount points on a mortgage? explain in complete sentences. (6 points)

If you do not plan to live in the house for a long period of time, it is not worth the up front money you pay to purchase points.

Additionally, if you do not have the money up front to pay for the points, you may have to take an extra loan out.  You will then be paying interest on the money you used to lower your mortgage interest rate.

If interest rates go down after you purchase the home, you could potentially refinance to save yourself some interest.  This may make purchasing the points an unnecessary move.