Mortgage points, also referred to as discount points (or just “points”), are additional funds you can pay at closing to lower your mortgage interest rate. Use the calculator below to see how paying points could impact your cost over the life of the loan.
Whether it makes sense to pay them depends on a few factors—a main one being how long you plan to stay in your home. The longer you expect to be in the home, the greater the advantage of paying points to lower your loan's interest rate. Paying points may not make financial sense if you plan to sell, refinance, or pay off the loan in the near future.
If you need help crunching the numbers or understanding the results, we’re here to help any way we can.