## Should you pay points to lower your mortgage interest rate?

You can choose to pay a percentage of the interest up front to lower your interest rate and monthly payment. A mortgage point is equal to 1 percent of your total loan amount. For example, on a $100,000 loan, one point would be $1,000. Learn more about what mortgage points are and determine whether “buying points” is a good option for you.

## How do you calculate break even on a mortgage?

Using the Mortgage Points Break-Even Calculator. This mortgage points calculator assumes that you’ll roll the cost of your points into the mortgage. Enter the total cost of the mortgage with points in the box marked "Mortgage amount.". The calculator will determine the size of the loan without points for comparison.

## What are mortgage points and how do they work?

How do mortgage points work? Mortgage points, also known as discount points, are a form of prepaid interest. You can choose to pay a percentage of the interest up front to lower your interest rate and monthly payment. A mortgage point is equal to 1 percent of your total loan amount.

## How many discount points are included in interest rates for mortgages?

Use our calculator to see estimated rates today for mortgage and refinance loans based on your specific needs. Interest rates for mortgages below may include up to 0.5 discount points as an upfront cost to borrowers.