Calculator
Discount Points Calculator
See what paying points to lower your rate costs, saves and how long it takes to break even.
Break-even on the cost of points
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Estimates only, based on the numbers you enter. Not a Loan Estimate, rate quote, offer or commitment to lend. Actual terms depend on credit, property, program and market conditions.
When paying points makes sense
Discount points are prepaid interest: you pay more at closing for a lower rate for the life of the loan. They make sense when you keep the loan well past the break-even point. If you might sell or refinance sooner, a lender credit or a temporary buydown may fit better. Use the rates and point costs from your Loan Estimate; pricing changes daily.
Compare with a temporary buydown
A permanent buydown lowers the rate for the whole loan. A temporary buydown lowers the payment for the first year or years. See the temporary buydown calculator and how buydowns work.
Common questions
What are mortgage discount points?
Points are prepaid interest. One point equals 1% of the loan amount, paid at closing to get a lower interest rate for the life of the loan. They're listed in Section A of your Loan Estimate.
When are points worth paying?
When you keep the loan well past the break-even month: the cost of the points divided by the monthly savings. If you might sell or refinance sooner, the upfront cost may never pay back.
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