How Many Discount Points Can You Buy?

The short answer: Most lenders allow 3-4 discount points maximum, though some may allow more. But should you buy that many? Let's break it down.

Typical Limits by Lender

Lender Type	Typical Maximum Points
Conventional	3-4 points
FHA	2-3 points
VA	2 points (seller limits)
Jumbo	4+ points

The Law of Diminishing Returns

Here's the key insight most borrowers miss: the more points you buy, the less value each additional point provides.

Points	Rate Reduction	Break-Even
1 point	0.25%	~5 years
2 points	0.50%	~5.5 years
3 points	0.75%	~6 years
4 points	1.00%	~6.5 years

When Buying Multiple Points Makes Sense

✅ Buy more points if:

• You're certain you'll keep the loan 10+ years
• You have excess cash at closing
• You're in the highest tax bracket (potential deduction)
• Rates are historically high and won't drop soon

❌ Buy fewer (or no) points if:

• You might refinance in 3-5 years
• You need that cash for other purposes
• Rates are expected to drop significantly

Calculate Your Optimal Points

Use our Discount Points Break-Even Calculator to find the sweet spot for your situation.

LO Script: Explaining Points Limits to Clients

"Most lenders cap points at 3-4, but honestly, buying more than 2 points rarely makes sense. Here's why: each additional point takes longer to pay off. Let me show you the math for your specific loan..."

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