Should I Buy Discount Points
Get a clear yes-or-no on buying discount points for your loan: this guide compares your planned stay against the break-even month and states the verdict.
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 → ✓ Buy the points, $3,000.00, 6.250%, $1,896.20, $1,847.15, $49.05, 62 months (5.1 yrs)
How to use
This is the decision version, not just a calculator. Enter your loan and how long you actually expect to keep it — the tool compares that planned stay against the break-even month and tells you outright whether buying points is worth it for your situation.
The rule of thumb: if you sell or refinance before the break-even month, the upfront cost of points is rarely recovered. If you stay well past it, the lower payments win. The verdict card below applies that line to your own numbers.
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.