Points
Points are upfront fees paid to the lender, with discount points lowering the rate and origination points covering loan costs.
What Points means
One point equals 1% of the loan amount. Discount points buy a lower rate; origination points are a charge for making the loan. Both appear on the Loan Estimate.
Florida example
A Florida borrower pays one discount point ($4,000 on a $400,000 loan) to drop the rate a quarter percent. Whether it's worth it depends on how long they keep the mortgage.
What points are
Points are upfront fees you pay to lower your interest rate. One point equals 1% of the loan amount.
Paying points can make sense if you plan to keep the loan for many years.
When to buy them
Buying points lowers your monthly payment but costs money at closing. The longer you stay, the more they pay off.
We calculate your break-even point on any buydown. Reach out and we will show if points are worth it.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: Freddie Mac Primary Mortgage Market Survey and Federal Reserve H.15 selected rates.