Should I buy points?

[Marty Gold]

Would anyone be able to please direct me through the math so I can evaluate if buying points on a mortgage for an investment property is or isn't a good idea?

I've heard buying points on the loan is a tax deduction, is this true?

Thank you 

[Brian Nordman]

Well it's pretty simple. You take the Original interest rate times the loan amount minus the new interest rate times the loan amount. You then take the cost of buying down the interest rate and dividing by the difference in the costs of the interest calculated above. That gives you how many years you must hold the property to make buying down the interest rate a profitable investment. Like I said it'd be easier to show if you just gave me the numbers.