The mortgage curmudgeon bucks conventional wisdom on paying points on your mortgage.

For example, while the return over seven years was only 8 percent on a 30-year FRM, on a 7-year ARM it was 22 percent. On a 3-year ARM, the return over three years was 17.5 percent. I found this so astonishing that 10 days later I looked again to be sure I hadn’t made a mistake. Sure enough, I hadn’t.