Can someone help me figure out the cost of buying an interest rate down?

I am a loan officer, but I have not yet had to buy a rate down for a client. Is it typical for a lender to charge both the cost of buying the rate down AND additional discount points on top of that?Can someone help me figure out the cost of buying an interest rate down?
The additional discount points are the cost of buying a rate down. And I have never thought it was a good idea for someone to buy a rate down.Can someone help me figure out the cost of buying an interest rate down?
Not a good idea to buy down unless they think rates will never go lower than they are right now for 7-10 years. Unlikely.





I'd advise them to not buy down the rate, especally when you can get 5.5% without paying points right now.
This is partly how lenders make money. If your manager hasn't explained this to you, you need to ask!