Should You Pay Mortgage Points to Lower Your Rate?

Discount points are an upfront cost paid to lower your interest rate. One point typically equals one percent of the loan amount.

Whether points are worthwhile depends on how long you keep the mortgage and how quickly the monthly savings recover the upfront cost.

The Points Calculator helps you compare paying points now versus keeping a higher rate.

If you expect to refinance or sell soon, points may not pay off. If you plan to stay longer, they can be a smart trade.