Calculate whether buying mortgage points is worth the upfront cost. See your break-even point and total savings over time.
What Are Mortgage Points?
Mortgage points, also called discount points, are fees you pay directly to the lender at closing in exchange for a reduced interest rate. One point typically costs 1% of your total loan amount.
When to Buy Points
Buying points is usually worthwhile if you plan to keep your mortgage for a long time. Calculate the break-even point to determine if it makes sense for your situation.