Discount Points
Discount points are upfront fees you pay a lender to lower your mortgage interest rate — one point costs 1% of the loan and typically cuts the rate by about 0.25%. Buying points makes sense only if you'll keep the loan long enough for the monthly savings to recover the upfront cost.
Points are why two loans with the same rate can cost different amounts, and why APR — which folds points in — is the fairer comparison. Find the break-even month by dividing the point cost by the monthly savings; if you'll move or refinance sooner, points cost you money.
Put it to work
APR Calculator
See a loan's true cost. Enter the rate, term, and upfront fees to get the real APR — the number that folds points and closing costs into one annual figure you can compare across offers.
Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, PMI and HOA — plus total interest and a full amortization breakdown. Free, fast, no signup.
Mortgage Refinance Calculator
Should you refinance? Compare payments, find your break-even month on closing costs, and see the honest lifetime cost — including the term-reset trap.