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🎯 Points & Buydown

Should You Buy Discount Points?

See what paying points to lower your rate costs upfront — and exactly how long until it pays for itself.

Buydown Details

Loan Amount $320,000
$50K$2M
Base Interest Rate 6.5%
2%12%
Discount Points 1.00
04
How this works: 1 point = 1% of your loan amount, paid upfront, and lowers your interest rate by about 0.25%. Actual buydown costs and rate reductions vary by lender, loan type, and market conditions.
Base Rate
New Rate
Base Payment
New Payment
You Pay Upfront

Buying points makes the most sense when you plan to keep the loan past the break-even point. If you may sell or refinance sooner, the upfront cost may not pay off.

Your break-even point is when your accumulated monthly savings equal the upfront cost of the points. After that, the savings are pure benefit.

Break-Even Point
Cost of Points
Monthly Savings
Lifetime Net Savings
Lower Monthly Payment By
$0
Monthly Savings
Break-even in
Cost of Points$0
New Rate6.50%
Base Payment$0
New Payment$0
Lifetime Net Savings$0
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This calculator provides estimated results for illustration purposes only. Actual point costs, rate reductions, and payments depend on credit score, loan-to-value, property type, and lender terms. Contact us for a personalized quote.

💡 Pro Tips

  • Points pay off only if you keep the loan past the break-even point
  • Planning to sell or refinance soon? Points usually aren't worth it
  • Discount points are often tax-deductible — ask your tax advisor
  • Sellers or builders can sometimes pay your points as a concession

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