How to Calculate Discount Points on a Mortgage

Formula, examples, and calculator for mortgage discount points

Loan Amount

Rate Without Points

Rate With Points

Points to Buy

pts

Loan Term

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Calculate how long it takes for discount points to pay off. Find your break-even...

Calculate the cost of mortgage discount points. See how much you'll pay upfront ...

Learn the discount points formula and calculate your costs. Understand how point...

Frequently Asked Questions

Discount Points Cost = Loan Amount × Points Percentage. For example, 1 point on a $400,000 loan = $400,000 × 1% = $4,000.

Typically, 1 discount point reduces your interest rate by 0.25%, though this varies by lender and market conditions.