Discount Points Calculator
Calculate the cost and value of mortgage discount points
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Create Your Own ComparisonFrequently Asked Questions
A discount point is an upfront fee equal to 1% of your loan amount. Paying points reduces your interest rate, typically by 0.25% per point.
Multiply your loan amount by the number of points. For example, 1 point on a $400,000 loan costs $4,000.
Points are worth it if you'll keep the loan long enough to recoup the upfront cost through monthly savings. Calculate your break-even period to decide.
Most lenders allow up to 3-4 points, though some may offer more. There's typically a point of diminishing returns after 2-3 points.