Cost To Buy Down Points On A Mortgage ◉ (TRUSTED)

Buying down "points" (discount points) on a mortgage is a strategy to lower your interest rate by paying a lump sum upfront at closing. As of April 2026, the standard cost for one mortgage point remains . Cost and Rate Impact

💡 : Buying points is essentially a bet that you will keep the loan for longer than the break-even period. When It Makes Sense Everything You Need to Know About Mortgage Discount Points cost to buy down points on a mortgage

The most critical part of this decision is the break-even analysis—how many months it takes for the monthly savings to cover the upfront cost. The Formula Buying down "points" (discount points) on a mortgage

: Each point is equal to 1% of your principal loan. When It Makes Sense Everything You Need to

: One point generally reduces your interest rate by 0.25% (25 basis points), though this varies by lender.