Discount Points Break-Even Calculator
Calculate how many months until your discount points pay for themselves
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Create Your Own ComparisonFrequently Asked Questions
Discount points are upfront fees paid to the lender to reduce your interest rate. One point equals 1% of the loan amount and typically reduces the rate by 0.25%.
Divide the cost of the points by the monthly savings. The result is the number of months needed to recoup your investment.
Buy points if you plan to stay in the home longer than the break-even period and have extra cash at closing.