Mortgage Discount Points Calculator
Estimate the cost of mortgage discount points, your new rate, monthly savings, and the break-even point before you lock a loan.
Mortgage figures are entered and computed on your device — nothing is sent anywhereTry: Loan amount=300000, Base interest rate=6.5, Discount points to buy=1, Rate drop per point=0.25, Loan term=30, How long you will keep the loan=120 → $3,000.00, 6.250%, $1,896.20, $1,847.15, $49.05, 62 months (5.1 yrs)
How to use
Mortgage discount points let you pay extra at closing to lower your interest rate. One point costs 1% of the loan amount. Lenders typically cut the rate by about 0.25% per point, though the exact break varies by loan and day.
Enter your loan amount, the rate you were quoted, and how many points you are considering. The calculator shows the upfront cost, your new rate, the monthly payment with and without points, and how many months of payments it takes to break even. If you plan to sell or refinance before that point, the points usually are not worth it.
FAQ
How much does one discount point cost?
One point costs 1% of your loan amount. On a $300,000 loan, one point costs $3,000.
How much does my rate drop per point?
A common rule of thumb is about 0.25% per point, but your lender sets the actual buydown schedule. Always read the loan estimate.
Are discount points worth buying?
Only if you keep the loan past the break-even month. The calculator shows that break-even point for your numbers.