Discount Point Calculator
Should you buy points to lower your mortgage rate? Calculate the break-even time.
1 Point = 1% of Loan Amount.
Usually 0.25% per point.
What are Discount Points?
Discount points are fees paid directly to the lender at closing in exchange for a reduced interest rate. One point costs 1% of your mortgage amount.
Buying points makes sense if you plan to stay in the home longer than the break-even period (the time it takes for monthly savings to exceed the upfront cost).