Cost To Buy Down Points On A Mortgage Apr 2026

: You can usually buy fractional points (e.g., 0.5 points) or multiple points (e.g., 2.0 points). Calculating the "Break-Even" Point

💡 : 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

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 : You can usually buy fractional points (e

: Each point is equal to 1% of your principal loan. As of April 2026, the standard cost for

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